T H E C H R O N I C L E
13 While the develop- 10 Hospitality ventures
ment strategy fo- come to complement
cuses on revenue- and support real
generating and added- estate development
value ventures to com- and enhance property
plete the Traditional City value. Hotels, cafes,
Center, the future devel- and restaurants blossom
opment frontier is the alongside office and res-
Waterfront District, with idential neighborhoods,
gateway projects set to promoting the city cen-
bridge the transition from ter as a welcoming and
historic to new. friendly, mixed-use space.
12 After Saifi, Wadi 09 Beirut Souks, a flag-
Abou Jamil is taking ship retail project,
shape as a new opens its doors.
calm, urban, residential This signature shopping,
neighborhood, while the hospitality, entertain-
construction of several ment, and cultural meet-
high-rise and large-scale ing point boosts the
developments are economic vitality and
launched in the Hotel social vibrancy of the city
District, Serail Corridor, center. The expansive site
and Saifi, all evolving to is a prime example of
complete the Traditional how layers of the city can
City Center cityscape. be incorporated into a
contemporary design.
11 Zaitunay Bay inau-
gurates its quayside 08 With the Conserva-
restaurant strip and tion Area’s urban
welcomes more than fabric almost com-
3,000 visitors per day in plete and the remaining
the first six months. At parts of the Traditional
the other end of town, City Center more than
the newly landscaped halfway developed, a cul-
Uruguay Street vitalizes tural strategy is imple-
nightlife activity in the mented to promote
Conservation Area, where culture, arts, and heritage
selected buildings are il- as tremendous resources
luminated in the for the local and interna-
nightscape through an tional communities.
image projection system.
07 With the completion
of land reclamation
and the visible
demarcation of the new
Waterfront District, along
with a continuous rise in
developers’ and investors’
interest in real estate
development, requests
come in to emulate the
success of Beirut city
center’s regeneration
enterprise in other parts
of the world.
06 In preparation for
the development
of the Waterfront
District – the reclaimed
expansion of the tradi-
tional city center – Beirut
is promoted as an inter-
national corporate busi-
ness center. Further
detailed urban and traffic
studies are carried out,
resulting in amendments
to the Master Plan.
05 The seafront Beirut
Marina is fully oper-
ational, berthing a
large number of vessels
on annual and seasonal
bases. The planning and
construction of several
real estate projects rush
forward, especially in
Wadi Abou Jamil, the
Hotel District, and the
Serail Corridor.
04 An international
urban design com-
petition solicits new
visions for Martyrs’ Square
and its surroundings.
The objective is to open
the axis toward the sea
with respect to the urban
grid and reposition the
square as a national
meeting point.
03 In establishing
the city center as a
culture and leisure
destination, a strategic
approach is taken to
integrate archeological
finds within the urban
fabric. Meanwhile, a
Quartier des Arts evolves
against the backdrop
of reconstructed and
restored traditional
buildings in Saifi Village.
02 Focusing on real
estate develop-
ments that attract
tenants and residents to
the city center, and fol-
lowing the positive
response to Saifi Village,
the impetus to invest in
other residential devel-
opments increases. This
trend also underlines the
importance of full-time
property maintenance
and operations services,
which begin to be offered
to third-party developers.
01 As businesses,
commercial outlets,
and landscaped
open spaces multiply,
a number of vacant lots
provide temporary park-
ing spaces to accommo-
date the mobility of the
growing number of ten-
ants and visitors, in
anticiplation of the
completion of under-
ground parking facilities
prescribed in the city cen-
ter’s Master Plan.
00 With archeological
documentation and
evaluation in full
swing, and following
extensive findings related
to the Cardo Maximus, a
large site between several
places of worship is dedi-
cated to be a landscaped
public space as the
Hadiqat As-Samah (Gar-
den of Forgiveness).
99 The city center is
pulsing with life.
Landmark buildings
are being restored and
cafes and restaurants are
multiplying. Businesses
and institutions relocating
to the area are drawn by
the amenities and serv-
ices such as the state-of-
the-art communication
network, security, and
maintenance.
Solidere Annual Report 2012:
an account of facts and events in the reconstruction
and development of beirut city center
98 All infrastructure 94 Comprehensive
works in the Tradi- urban planning
tional City Center stresses the topog-
are complete including raphy of Beirut city center
the expansion of the and ensures a connection
Ring Road and the cre- between the project and
ation of primary east– its surrounding areas,
west and north–south accommodating a broad,
avenues, which organize sustainable, flexible
accessibility and con- land-use mix.
serve air and view corri-
dors. 91 Beirut’s postwar
urban recovery is to
97 Restoration is car- be directed through
ried out based on concerted private sector
clear urban design, investment into a care-
technical guidelines, and fully constructed institu-
architectural briefs, pre- tional framework,
serving facades and regulated by government
adapting interiors to the decree. It is set to become
needs of contemporary one of the largest inner-
life and business. Mean- city and waterfront
while, following a fast- renewal projects in the
track approach, the first world.
major new development
reaches completion.
96 Beirut city center
becomes a large
archeological site,
with excavations uncov-
ering major discoveries
dating back to several
past civilizations. These
excavations are carried
out following a UNESCO
protocol specifically
devised for the area in
coordination with a
number of agencies and
teams of experts from
several different countries.
95 Informed by natu-
ral boundaries and
landforms, street
patterns, visual corri-
dors, past neighborhood
structures, and preserved
fabrics, the city center is
envisioned as a cluster of
sectors, each with its own
detailed master plan.
12
An account of facts and events in the reconstruction and
development of Beirut city center

The Chronicle presents a linear sequence of facts and events

spanning eighteen years of reconstruction and development
in Beirut city center. Like a timeline, it moves chronologi-
cally, without analysis or interpretation. Through the unique
method of the chronicle, historiography extends through
generations.
 Nasser Chammaa Dear Shareholders,

a word from the chairman The Lebanese economy has endured the devastating consequences
of geopolitical upheaval and domestic tension. The uncertainty, com-
pounded by ongoing regional turmoil, has exacted a marked and
heavy toll on the real estate, tourism, and hospitality sectors.

Our Company was not spared, and the number of transacted sale
deals in 2012 was drastically low as a result of the growing fallout.
The downturn in economic activity at the national level with its
pronounced effects on the commercial and hospitality sectors has
afflicted the Company’s related businesses, too. Net operating rev-
enues dropped sharply by 68 percent, and net income fell 90 percent
year over year.

Still, Solidere’s fundamentals remain strong: our valuable assets

include a land bank estimated at around US$8 billion, a real estate
portfolio valued at US$1.3 billion, and a balance in cash and receiv-
ables of about US$717 million.

We reevaluated and adapted our strategies to ensure the sustainabil-

ity of resources. As we weather this tumultuous climate, we have
streamlined operations and continue to decrease overhead expenses.
Real estate activity proceeds, though at a much reduced pace.
Certain real estate development projects have been postponed while
the progress of others has slowed. These shifts will ensure cautious
application of Company resources, and they will enable Solidere to
maintain the track record of superior quality that the brand represents.

We will inaugurate the Souks’ Cinema and Entertainment Complex

by end 2013 and will complete the Souks’ Department Store in 2015.
Both projects generate revenue and will strengthen the vibrancy and
value of the area, and more broadly of Beirut city center. In addition,
other projects such as the Serviced Apartments and Wellness Center,
due for delivery by end 2016, will increase the critical mass of the
Souks area.

Land on the Waterfront District is ready for construction. The Eastern

Marina and 80,000 sq m waterfront city park, now scheduled for a
! — 03

later delivery date, will complement the other real estate projects in
the area and serve as additional magnets.
02

Further afield, Solidere International, of which Solidere owns 39

percent, remains financially solid with high liquidity and zero debt.
Solidere International pursues the relentless effort to increase business
in the region through investments in exclusive and high-value land
and real estate development projects with the potential to deliver
attractive return on investment. Moving forward, the objective is to
capitalize decisively on market trends in the region, primarily in
Saudi Arabia and the United Arab Emirates.

In 2012, Solidere International distributed a dividend of US$1.50 per

share from 2011 profits. We trust that Solidere International’s progress
will further catalyze potential value and revenue growth for Solidere
and its shareholders.

Despite the dire circumstances, the Company stands fast as a market

leader in the real estate and land development field. Indeed, Solidere
is well positioned to meet its objectives by capitalizing on strong fun-
damentals and core competencies.

We remain unflinching in our commitment to uphold and pursue

Solidere’s interest. Our focus is on implementing strategies that
sustain value creation and result in better returns for the Company’s
stakeholders. At the same time, we will remain vigilant. A flexible
Nasser Chammaa approach to business planning is the key to insulating the Company
Chairman and General Manager to the greatest extent possible from the negative consequences of
July 2013 local and regional instability.
 In establishing the Focusing on real As businesses, With archeological The city center is All infrastructure Restoration is Beirut city center
THE CHRONICLE While the develop-
ment strategy
focuses on revenue-
After Saifi, Wadi
Abou Jamil is tak-
ing shape as a new
Zaitunay Bay inau-
gurates its quayside
restaurant strip and
Hospitality ven-
tures come to com-
plement and
Beirut Souks, a
flagship retail proj-
ect, opens its doors.
With the Conserva-
tion Area’s urban
fabric almost com-
With the comple-
tion of land recla-
mation and the
In preparation for
the development
of the Waterfront
The seafront Beirut
Marina is fully
operational,
An international
urban design com-
petition solicits new
city center as a cul-
ture and leisure
estate develop-
ments that attract
commercial outlets,
and landscaped
documentation and
evaluation in full
pulsing with life.
Landmark build-
works in the Tradi-
tional City Center
carried out based
on clear urban
becomes a large
archeological site,
Informed by natural
boundaries and
landforms, street
Comprehensive
urban planning
stresses the topog-
Beirut’s postwar
urban recovery is to
be directed through
generating and calm, urban, resi- welcomes more support real estate This signature plete and the re- visible demarcation District – the re- berthing a large visions for Martyrs’ destination, a tenants and resi- open spaces multi- swing, and follow- ings are being re- are complete in- design, technical with excavations patterns, visual cor- raphy of Beirut city concerted private
added-value ven- dential neighbor- than 3,000 visitors development and shopping, hospital- maining parts of of the new Water- claimed expansion number of vessels Square and its sur- strategic approach dents to the city ply, a number of ing extensive find- stored and cafes cluding the expan- guidelines, and uncovering major ridors, past neigh- center and ensures sector investment
tures to complete hood, while the per day in the first enhance property ity, entertainment, the Traditional City front District, along of the traditional on annual and sea- roundings. The ob- is taken to integrate center, and follow- vacant lots provide ings related to the and restaurants are sion of the Ring architectural briefs, discoveries dating borhood structures, a connection be- into a carefully con-
the Traditional City construction of sev- six months. At the value. Hotels, cafes, and cultural meet- Center more than with a continuous city center – Beirut sonal bases. The jective is to open archeological finds ing the positive temporary parking Cardo Maximus, a multiplying. Busi- Road and the cre- preserving facades back to several past and preserved fab- tween the project structed institu-
Center, the future eral high-rise and other end of town, and restaurants ing point boosts the halfway developed, rise in developers’ is promoted as an planning and con- the axis toward the within the urban response to Saifi spaces to accom- large site between nesses and institu- ation of primary and adapting inte- civilizations. These rics, the city center and its surrounding tional framework,
development fron- large-scale devel- the newly land- blossom alongside economic vitality a cultural strategy and investors’ inter- international cor- struction of several sea with respect to fabric. Meanwhile, Village, the impetus modate the mobil- several places of tions relocating to east–west and riors to the needs excavations are car- is envisioned as a areas, accommo- regulated by gov-
tier is the Water- opments are scaped Uruguay office and residen- and social vibrancy is implemented to est in real estate porate business real estate projects the urban grid and a Quartier des Arts to invest in other ity of the growing worship is dedicated the area are drawn north–south av- of contemporary ried out following a cluster of sectors, dating a broad, sus- ernment decree.
front District, with launched in the Street vitalizes tial neighborhoods, of the city center. promote culture, development, re- center. Further rush forward, espe- reposition the evolves against the residential develop- number of tenants to be a landscaped by the amenities enues, which or- life and business. UNESCO protocol each with its own tainable, flexible It is set to become
gateway projects set Hotel District, nightlife activity in promoting the city The expansive site arts, and heritage as quests come in to detailed urban and cially in Wadi Abou square as a national backdrop of recon- ments increases. and visitors, in an- public space as and services such as ganize accessibility Meanwhile, follow- specifically devised detailed master land-use mix. one of the largest
to bridge the transi- Serail Corridor, and the Conservation center as a welcom- is a prime example tremendous re- emulate the success traffic studies are Jamil, the Hotel meeting point. structed and re- This trend also un- ticiplation of the the Hadiqat As- the state-of-the-art and conserve air ing a fast-track for the area in coor- plan. inner-city and wa-
tion from historic Saifi, all evolving to Area, where selected ing and friendly, of how layers of the sources for the local of Beirut city cen- carried out, result- District, and the stored traditional derlines the impor- completion of un- Samah (Garden communication and view corridors. approach, the first dination with a terfront renewal
to new. complete the Tradi- buildings are illu- mixed-use space. city can be incorpo- and international ter’s regeneration ing in amendments Serail Corridor. buildings in Saifi tance of full-time derground parking of Forgiveness). network, security, major new devel- number of agencies 94 projects in the
tional City Center minated in the rated into a con- communities. enterprise in other to the Master Plan.
04 Village. property mainte- facilities prescribed and maintenance. opment reaches and teams of ex- 95 world.
cityscape. nightscape through temporary design. parts of the world. nance and opera- in the city center’s
98 completion. perts from several
13 an image projection
10 05 tions services, Master Plan.
00 different countries.
system. 08 06 03 which begin to be
99 91
12 09 07 offered to third-
97
party developers.
01 96
11
02
an account of facts and events in the reconstruction
and development of Beirut city center
Solidere Annual Report 2012:

24 — 25 40 — 41 64 — 65
Rania Sassine Oussama Kabbani Ghaleb Mahmassani
on Building the Solidere Brand on Planning the Urban Regeneration on Structuring the Legal
and Learning across Generations of Beirut City Center Framework of Solidere

STRATEGY DEVELOPMENT VITALITY HOSPITALITY RETAIL CULTURE ENTERPRISE EXPANSION SEAFRONT URBAN GRID RESTORATION MAINTENANCE MOBILITY PUBLIC SPACE COMMUNICATION INFRASTRUCTURE ARCHITECTURE ARCHEOLOGY PLANNING SUSTANABILITY FRAMEWORK

New real estate proj- As a result of detailed From the onset, tem- Hospitality venues A shopping destina- Archeological sites, With its convenient The new Waterfront Beirut Marina and its Most of the existing Buildings of heritage Facility management In addition to requir- The public domain Beirut city center is a The most important A rich variety of ar- Referred to by the in- A comprehensive The Beirut Central A group of strategic
ects achieve a bal- urban planning for a porary activities were from hotels to restau- tion that builds on a art exhibits, and location, design flexi- District is an expan- surrounding board- street grids that radi- and architectural and its related opera- ing developers to in- will consist of no less 24-hour IT zone, pro- part of reconstruct- chitectural expres- ternational media as urban master plan, District Master Plan’s thinkers, urban de-
anced mix of land number of distinct set up on vacant lots rants carry on the centuries-old legacy music festivals re- bility, efficient avail- sion of a landfill that walk and quayside ate from the historic value are accurately tions and mainte- corporate parking than 60 parks, gar- viding an array of ing and developing sions are present the largest archeolog- developed out of ex- mixed-use policies signers, planners, en-
use according to de- residential neighbor- in the city center to Lebanese tradition of trade and com- main dynamic and able technology, and housed a dumpsite restaurant strip have core are preserved. restored with no al- nance in Beirut city spaces into building dens, squares, pedes- multimedia and the city center is the throughout the city, ical site in the world, tensive studies and are defined through gineers, architects,
tailed sector plans. hoods and mixed-use attract the country’s of refined living as merce, Beirut Souks integral elements of modern services, for 16 years – an become a hub of out- View and air corri- terations or additions center are an essen- plots and provide ad- trian areas, and broadband commu- installation of high- such as French Man- Beirut’s finds and public debate, sector regulations, al- craftspeople, legal
To control the pace, areas, diverse groups population, bringing part of the social and maintain the struc- everyday life in the Beirut city center is environmental scar door activities. A dors to the sea and while other retained tial component of equate parking to seafront prome- nication services. quality infrastruc- date, Venetian- and treasures suggest stresses the topogra- lowing land use to re- minds, and financial
components, and of people now live life to an area that economic process ture of the pre-war city center. Further- a prime location for on the city center soon-to-open yacht mountains are main- buildings are allowed conserving property serve the uses of each nades, the most im- Tenants can surf the ture, both under and Genovese-inspired that the city became a phy of Beirut city main as flexible as specialists is en-
quality of each proj- and work in the city was otherwise bar- that has renewed the grid while integrating more, one newly business and retail. seashore. Following club and a planned tained through wide some level of flexibil- and land value in project, the Master portant of which will internet at speeds un- above ground, in ac- triple arch windows, significant urban center, its surviving possible in order to trusted with the task
ect, Development center, benefiting ren. Over the years, city center for quality open spaces and developed and 18 his- The new Waterfront extensive land treat- Eastern Marina will streets, major public ity, including limited the market and ulti- Plan includes a num- be the waterfront city available elsewhere cordance with inter- Ottoman arcades and center in the third buildings, townscape meet evolving devel- of rebuilding the
Briefs provide stan- from the many con- new destinations living. archeological finds torical spaces of wor- District will also offer ment and reclama- further concretize the spaces, and low-rise facade alterations mately attracting ber of underground park. All of these in Lebanon and enjoy nationally approved cornices, Islamic millennium BC; views, neighborhood oper and end-user heart of Lebanon’s
dardized documenta- veniences the area draw people to the into a contemporary ship around the city a wide range of com- tion, the Waterfront city’s historic link to building zones. and potential addi- tenants. public parking lots. contribute in creating an enhanced televi- standards to best friezes and inscrip- since then it has fabric, and the many needs. The renewal capital city into a re-
tion of technical has to offer. city center and en- design adapted to center attest to the mercial and retail District is envisioned the Mediterranean tions. This approach The standards as- a pleasant and dis- sion experience. serve the interests of tions, and 1920s and been home to a large layers of historical of the city center has gional economic, so-
guidelines and calcu- hance the restoration modern life. ongoing spiritual di- space in addition to as a natural exten- Sea. affirms that historical sume a gradual intro- tinctive urban real estate develop- 1930s neo-Oriental number of civiliza- memory that form come to exemplify a cial, and cultural
lation of floor space. of its social fabric. versity and richness a special business sion of the city cen- structures can sur- duction of effective character. ment, public areas, designs, comple- tions. Archeological the city’s heritage. It sustainable model of destination.
of the place. district. ter, with extensive vive and create value public transportation and city center ten- mented by contem- remains are uncov- conceives of the city inner-city regenera-
green areas and dis- when adapted to the within the city. ants and visitors. porary new ered, preserved, and center as a cluster of tion.
tinctive architecture. needs of contempo- developments. integrated into recon- city quarters, each
rary life. struction efforts. with its own identity
and character, to be
developed over a pe-
riod of time.
The Chronicle
Solidere Annual Report 2012

An account of facts and events in the

reconstruction and development of
Beirut city center
 Mosbah Assi
on Photo-Documenting the
Reconstruction and Development
of Beirut City Center
Once a photojournalist covering the devastation
of the Lebanese civil war, Mosbah Assi has spent
the past twenty years documenting the reconstruc-
tion and development of Beirut city center on a
daily basis.
! — 11
During the Lebanese civil war, I was a photojournalist portraying the
horrors and destruction of war in the hope of stopping it. I witnessed
how it damaged the country and its people.
I started working for the would-be founders of Solidere in May 1993.
I had to take a 180-degree turn, wear a new hat, to show how what
is destroyed can be rebuilt, how there was still beauty around us,
how a city can revive from its ashes. It was not an easy task at first,
but I had faith in the project, and it drove me to want to capture the
reconstruction and development efforts.
I filled not with trees but with long grass growing out of the garbage.
In 1993, there were no visible roads in what we call the city center
today, no visible landmarks. I knew the city center well before the war,
but when I first came back, I had trouble pinpointing my whereabouts,
and I kept on losing my bearings. Shrubs, even trees, were growing
out of nearly every wall left standing and in the middle of what used
to be streets. There were still many land mines in the area, and the
Lebanese army was organizing special tours for photographers.
We started by photographing squatters, the people who were living
in the destroyed buildings. They knew how to move about, how to
avoid land mines, because they moved from building to building
through the gaping holes, remnants of the war .
The areas that were the worst off were Allenby and Weygand streets,
Martyrs’ Square, Bab Idriss, Wadi Abou Jamil, and the old Souks. In
somewhat of a contrast, Maarad and Foch streets, Lazarieh Center,
and the Riad El Solh Square area were better off. Actually, in 1993,
there were small ill-kempt cafés and even a men’s salon, open for
business near Riad El Solh Square.
II
By the end of 1994, all the land mines were cleared, roads or rather
paths were opened, and rubble was removed. We needed to docu-
ment everything that was going on in the city center, particularly the
condition of every street and building. We had to capture details,
Once infrastructure works began and excavations started uncovering As reconstruction progressed, the Master Plan limits became less
archeological remains, we photographed everything for our own visible from land and sea, so we started taking aerial pictures at six-
records and for the Directorate General of Antiquities (DGA). One month intervals to keep track of which land area was being developed
example is the cemetery between Murr Tower and the Phoenicia and which wasn’t. Those were taken not only from airplanes but also
Hotel, a burial for the rich in pre-Ottoman times. The graves were from the multitude of cranes at construction sites around town.
filled with gold jewelry that have been transferred to the National
Museum. VI
III The mere fact that we were recording everything on film meant that
an archive was being kept. All our photographs are recorded by date,
The Normandy dumpsite was a dangerous area. It was like a jungle, place, and event. We never printed them all. Bear in mind that before
2004 they were not digital. We archived them all, and some were
There were bubbling gases and horrible smells. Water that was once used in corporate publications and in the media. At the end of the
part of the city center’s shoreline was barely visible, and it would day, images are more truthful than words, or rather an image is a
bubble as if boiling in some areas. There were unexploded bombs, credible support of words and efforts.
carcasses, garbage, anything and everything you can and cannot
imagine. We had to be very careful moving around. When the deci- Twenty years down the line, I have the exact same faith and same
sion was taken to treat the area and reclaim land, we documented drive in the project but probably less energy. I can honestly say that
the works. Everything was separated into recyclable or non-recyclable the city center looks better than my expectations were back then.
material. The rubble and debris from the city center’s destruction When I saw the extent of destruction, I could not imagine something
were moved to the landfill area, separated into usable and non-usable this beautiful could be constructed. The photographs gathered over
material, treated, and then used in the landfill. the years show the effort, depict the reconstruction, and document
the result.
IV
Once infrastructure works were on their way and salvageable buildings
marked, I started getting direction on what needed to be photographed
from the urban planning management; which sites, views, and angles
to capture. At first, I did not understand why I had to photograph a
large expanse of empty space or a straight line from the inner city cen-
ter toward the sea. It took me a while to realize that they were looking
at the city center through its Master Plan. Once I understood, it all
made sense. I felt I was in sync, that the way I was approaching my
photography was in line with how the planners envisioned the city
center. I could finally capture the plan through my lens.
V
In the beginning, after having taken every single angle shot from

document every single streetscape, doorway, balcony, stonemasonry, within the city center, we were asked to take some from the sea.
and window – in case it would be needed later on in the reconstruc- We would go out with fishermen and look back toward a cityscape
10

tion stage. The goal was to have a photographic record of the condi- that meant nothing, that showed nothing beyond a mountain made
tion of the city center as a whole so that we could compare it to our of garbage, a few derelict hotels and buildings, Murr Tower still in
reconstruction and development efforts in the future. cement, and Starco Center. Nothing else.
 Corporate
After having recorded a number
of land sale transactions in the
Waterfront District and finalized
its infrastructure, the target is to
push forward with its develop-
ment. Supported by strong
fundamentals and proper man-
agement of resources, the district
will rise to complete the devel-
opment of an integrated and
sustainable urban environment,
accommodating financial, com-
mercial, residential, cultural, and
tourist facilities.
! — 13
12
Communication Design Awards The Solidere
2010 Annual Report “City in Layers” receives the iF
Gold Communication Design Award, and the Solidere
2011 Annual Report “City in Scenes – City in Portraits”
wins the Red Dot: Best of the Best Communication
Design Award.
Development
The construction of a new project
begins on one of the few remain-
ing lots in the Conservation
Area, at the intersection of the
historic core and the new Water-
front District. Allenby Gate resi-
dential building, designed by
Nabil Gholam Architects, will
reinterpret the scale and propor-
tions of the contiguous historical
streetscape and strike a harmony
with the new, modern, reclaimed
land area.
The Cinema and Entertain-
ment Complex (photo below)
opens in the northern part of
Beirut Souks. Envisioned as a
mega entertainment destination,
the main building comprises 14
movie theaters including two VIP
halls with a private lounge area,
as well as concession areas, a
food court, and a special chil-
dren’s area. The volume of its
outer skin is composed of four
metal ribbons that wrap around
the four large theaters in a
north–south direction, generat-
ing a dynamic sculptural form.
At Allenby street level, high-end
boutiques form a continuation of
the existing retail offerings.
An adjacent L-shaped building
to the north of the complex hosts
several restaurants while an
annex facing Ajami Square local-
izes the entertainment facilities.
The movie theaters’ branding is
finalized to reflect two identities:
Beirut Souks and Cinema City.
Beirut Souks Cinema City will
offer the next generation of inte-
rior design and circulation for
cinemas around the world. It will
be managed and operated by
BCD cinemas, a partnership be-
tween Cinema City and Solidere.
KidzMondo As part of a temporary usage strategy,
following the examples of BIEL and Beirut Exhibition
Center, space is leased on the spine leading from
Allenby Street to the Waterfront District to Kidz-
Mondo, an edutainment center for children opened
in June 2013.
The Department Store (photo
next page), the final development
to round off the singular leisure
experience of Beirut Souks is now
under design by Zaha Hadid
Architects (UK). It will open its
doors to a three-story retail de-
velopment covering 26,370 sq m
of mixed-use space.
Designed by Nabil Gholam Ar-
chitects, the 178 Saifi develop-
ment is envisioned as a natural
extension to the popular Saifi
Village and comprises a cluster
of one office and four residential
buildings. A courtyard landscaped
by Vladimir Djurovic Landscape
Architecture runs through the
five units and serves as a relax-
ation space for tenants. The
courtyard design also integrates
archeological finds unearthed
during the excavation works.
The residential buildings are
townhouse-like units character-
ized by space, light, calm, and
comfort. They incorporate a wide
range of living options, including
large lofts, mini lofts with a com-
bined living-working space,
ground-floor maisonettes with
private gardens, central hall
apartments, and a variety of
penthouses with generous ter-
races. The office building offers
serviced offices and distin-
guishes itself from the living
spaces through its outer appear-
ance: an inner Corten facade
covered in triangular fin louvers
and urban windows, creating a
suspended garden.
Excavation works begin on a
new development at the south-
eastern edge of Beirut city center
in Saifi. Saifi Plaza is designed
by Nabil Gholam Architects and
comprises two buildings, one
residential and another office,
with surroundings that reflect
the dual character of the site: the
dynamic Ring Road movement
to one side and the calm Saifi
setting to the other.
Peter Marino (US) is the winner
of the design competition for the
mixed-use project on Hoyek
Street in the Serail Corridor. The
concept for the Furnished and
Serviced Apartments, Spa,
and Wellness Center presents a
successful massing response to
the local context, comprising two
structures with a central court-
yard. Marino teams up with
IdepConsult–Mounir Saroufim
for the detailed design phase.
One building houses the serviced,
furnished apartment wing, with
a tranquil entrance from the
southwest corner and a rooftop
garden and sun terrace with
spectacular views and access to
the second structure. The second
building houses the wellness
center, which features top design,
state-of-the-art equipment, and
professionals to cater to its clien-
tele. Both components will be
operated by a well-known
international firm with experi-
ence in this field. Residents and
visitors enjoy easy access to an
inner courtyard, where independ-
ent retail outlets, restaurants,
and cafes maintain privacy and
intimacy.
Fumihiko Maki and Associates
(Japan) wins the design compe-
tition for the Triple-A Office
Building in the Hotel District,
which is drawing the interest of
high-profile potential tenants.
The proposal highlights the flex-
ibility and efficiency of its inter-
nal space and embodies the
spirit of Beirut as a crossroads
where international businesses
establish their headquarters.
Fouad Menem Consultants and
Partners is selected as the local
architecture firm.
The concept incorporates a large
podium as a contemporary inter-
pretation of the Middle Eastern
souk, with its porous urbanism,
unique character, and sheltered
passageways. In response to the
global trend toward multiuse,
loosely defined working environ-
ments, a series of linked green
spaces runs through the tower.
Referred to as elements of verti-
cal urbanism, they connect the
work spaces to the surrounding
city and sea.
With a double-skin facade, the
building concept has been opti-
mized for Beirut’s mild winters
and hot summers. The outer
skin consists of a ceramic frit in
translucent and transparent
glaze, which protects against
wind and solar radiation but
still allows diffuse light to filter
through. The inner skin is fully
glazed and includes slits that
allow fresh air to reach the inte-
rior. Since the building is located
in a district mainly composed of
residences and hotels, a number
of amenities are offered on-site
to fulfill tenants’ daily needs.
These include a canteen, rooftop
restaurant, convenience store,
and several other facilities that
will make the building a one-
stop destination.
The building’s schematic design
is under review while current
market demand is assessed prior
to launching the Construction
Document phase.
The Zaitunay Bay yacht club,
with 14,000 sq m of floor space,
takes shape, emerging naturally
out of the land and transcending
the boundary between city and
sea. It is set to accommodate a
club for up to 400 members with
a swimming pool, restaurant,
bar, e-library, game room, and
spa center at ground level, along
with 53 serviced and furnished
state-of-the-art apartments on
the upper levels. The project re-
vives the richness of the urban
shoreline.
As a transition zone between the
Traditional City Center and the
Waterfront District, Renzo Piano
Building Workshop’s (Italy/France)
proposal for the Pinwheel Project
creates a sense of continuity and
urban unity. It establishes strong
pedestrian land use and build-
ing-scale links between the his-
toric core and the waterfront,
accommodating retail, hotel,
residential, and cultural use. It is
a key development that balances
four central dualistic concepts:
unity and diversity, permeability
and privacy, transparency and
opacity, and construction and
vegetation.
The first phase of development
on the western lot comprises a
number of buildings at podium
height composed of residential,
office, and retail components.
The podiums include an active
ground floor designed to be per-
meable and accessible to the
public; they also feature several
multiuse levels and suspended
rooftop gardens.
The retail frontages are adorned
with light, transparent canopies.
Trees play an essential role as
unifying elements that help unite
the traditional part of the city
and the new district throughout
the Pinwheel Project. The pres-
ence of water, another unifying
element, evokes the sea pene-
trating into the city and provides
a cooling effect in summer.
The suspended rooftop gardens,
accessed via panoramic elevators,
include both native and non-
native Mediterranean plants,
with a mixture of deciduous and
evergreen species to maintain a
green cover throughout seasonal
changes. Also at the rooftop level,
light constructions made of steel,
glass, and fabric are used as cafes
and restaurants. Light structural
walkways connect the different
plots together to create a contin-
uous promenade.
In the Waterfront District,
several plots of land have been
sold to third parties and are in
the planning phase of develop-
ment, such as Mika Land, a
residential project designed by
Foster + Partners (UK) with
R & K Consultants.
Landscape
Located on the northern part of
the Foch-Allenby Conservation
Area, Harbor Square, designed
by Gustafson Porter (US/UK), is
completed by Target. Covering
part of Beirut’s ancient harbor,
the design repositions part of the
old harbor wall within the square
and treats it as a sculpture.
Fountains and pavements shape
the square’s reinterpretation as a
harbor. Also completed is the
Bassel Fuleihan Memorial on
the Corniche Road between
Beirut Marina and the Phoenicia
Hotel, designed by Imad
Gemayel Architects and con-
structed by Araco.
Having realized more than half
of the gardens, squares, and
outdoor spaces envisioned in
the Beirut Central District Master
Plan, Solidere has several more
sites in the works. Others, includ-
ing the 80,000 sq m waterfront
city park, will take shape further
down the road.
Khan Antoun Bey Square is
progressing according to PROAP’s
(Portugal) design, adjacent to the
newly inaugurated Entertainment
and Cinema Complex of Beirut
Souks. All Saints Square, an-
other Shoreline Walk open space
designed by Gustafson Porter, is
also in development. In Beirut
Souks, Martha Schwartz Partners
(UK) is redesigning Imam Ouzai
Square and Marc Aurel Studio
(France) is redesigning the street
furniture. Finally, a signage and
navigation strategy is being
launched for the whole of Beirut
city center in cooperation with
Placemarque (UK).
13
 Corporate Infrastructure Development

Due to regional and local tensions
and in the aftermath of the global
economic downturn, the devel-
opment program is partially
modified to focus on priorities
and limit negative impact on op-
erations, thus preserving liquidity.
Precedence is given to completing
key developments in the Tradi-
tional City Center, such as the
Entertainment and Cinema
Complex and Department Store
in Beirut Souks, and infrastruc-
ture in the Waterfront District.
! — 15
The new Information Center
in Beirut Souks is inaugurated.
Strong Corp Electronic Products
Co. (UK) delivers the audiovisual
design and installation, incorpo-
rating infrastructure to provide
video and audio distribution as
well as system management
control. The center features a
room with a scale model of the
city center and a large video
wall; a boardroom with a poly-
com video conference system to
conduct global meetings at the
highest professional level; and
an auditorium and briefing room.
The audiovisual distribution and
control of the 32 screens through-
out the center are fed from up to
32 sources, including Apple TV,
touch panels, and iPads based
on Creston’s DigitalMedia (US).
The result is a flexible space for
meetings and presentations.
In its effort to improve preven-
tive and corrective efficiency,
Solidere’s facility operation and
maintenance team introduces
an environmentally friendly, mo-
bile application that monitors
and scans barcodes on equip-
ment and machinery to obtain
maintenance requirements ahead
of time. The team also under-
takes studies with energy-saving
objectives, carrying out energy
audits (monitoring, measuring,
and modeling electrical output
of all utilities) at two locations:
the UN House and Beirut Souks.
In addition, the team has imple-
mented trial adiabatic systems
with positive results, saving en-
ergy and money while protecting
the environment through lower
CO2 emissions. These system
trials are collaborative efforts
with the system suppliers. Ulti-
mately, all developments must
be “green” from the design stage
through to completion.
Laceco Architects & Engineers
submits a preliminary infra-
structure design for the Water-
front District, which it is then
asked to finalize. In the mean-
time, temporary infrastructure is
provided – electricity, water, and
drainage – for developers wish-
ing to begin construction on sold
plots in the district.
The authorities approve the final
design and layout for the East-
ern Marina, and the Council for
Development and Reconstruc-
tion (CDR) selects Bureau Veritas
(France) as technical controller.
In preparation for construction,
activity progresses on marine
works related to the eastern
perimeter of the reclaimed land
area, the northern revetment.
COWI (Denmark) has designed
the northern revetment to protect
the eastern limit of reclaimed
land from wave action and to
demark the eastern edge of the
area as per Master Plan require-
ments. It consists of a concrete
crown wall founded on structural
fill and protected by rocks and
accropodes. Dredging is required
underneath the structural fill to
rule out the possibility of lique-
faction from seismic activity. The
northern revetment extends from
the end of the caisson line to the
On the fifth floor of a building
near Riad El Solh Square, a
500 sq m space provides start-
ups with a high-tech, relaxed,
efficient work environment.
Cloud 5 can host up to 60 entre-
preneurs in the information,
communication, and technology
(ICT) sectors, each at an all-in-
clusive low cost per month that
ensures around-the-clock secu-
rity and unlimited high-speed
internet through the city center’s
fiber-optic Broadband Network.
Cloud 5 has already attracted
a number of start-ups and ICT
companies, such as Wamda,
Vinelab, and Procomix. Com-
pany management is in talks
with Oasis500, an Amman-
based business accelerator, and
Flat6Labs, a Cairo-based acceler-
ator, for the companies to estab-
lish operations in Cloud 5.
The Beirut Souks Core tenant
mix grows stronger with the
opening of new, world-famous
franchise outlets such as the Gap
clothing store and the return
of leading Lebanese bookstore
Librairie Antoine to its roots in
the city center. On the food and
beverage side, the famed fruit
cocktail maker Al Intabli cele-
brates its return, accompanying
the opening of Brgr Co and Grid
coffee shop.
BankMed and Solidere agree to
undertake joint marketing and
promotional efforts pertaining
to the bank’s MedMiles Program.
BankMed will offer cardholders
additional miles for each purchase
made at participating Beirut
Souks outlets.
In the Hotel District, Damac
Properties announces the
completion of substructure
and foundation works by MAN
Enterprises and launches the
construction of Damac Tower in
collaboration with Versace Home
for interior design.
Nearby, construction begins
on Beirut Terraces. Designed
by Herzog and de Meuron
(Switzerland) with Khatib &
Alami and an interior by Vincent
Beirut Gardens, Plus Towers One
and Two, and Beb Beirut are tak-
ing form, gradually transforming
the long-deserted topography
of the Martyrs’ Square Axis.
Meanwhile, the five-star Man-
darin Oriental Hotel chain an-
nounces that it will open its first
property in Beirut by 2017. The
estate is a locally-based joint
venture between Lebanese and
Saudi investors on the site of the
City Center Building or Dome,
which will be integrated into the
hotel’s design.
The Pinwheel Project, the anchor
that ties the Waterfront District
and the Traditional City Center
together, is in the detailed design
phase. With slight changes to the
original plan, phase one of the
project comprises a retail build-
ing, a triple-A office building, and
an office building with a world-
class fitness club at ground, mez-
zanine, and first basement levels.
The buildings are of podium
height with bridges connecting
their suspended rooftop gardens.

root of the breakwater for the Van Duysen (Belgium), the

marina. building’s multilayered approach
14

offers living spaces of lofty heights

and diverse spatial configurations,
orientations, and dimensions,
creating a kind of vertical village.

Communication Design Awards The 2009 Annual
Report “Beirut City Center” receives the German De-
sign Council Gold Award, and the 2010 Annual Report
“City in Layers” receives the Red Dot Design Award:
Best of the Best. As a result, the 2010 report begins
touring world museums and exhibition centers.
International Lighting Design Award Lighting
Beirut Architecture is one of 15 winners of the Inter-
Best Digital Media Installation At a trade-related
exhibition in Amsterdam this year, Integrated Systems
Europe, Strong Corp wins the award for Best Digital
Media Installation 2012 in its category for the inte-
grated audiovisual system design and installation at
Solidere’s new Information Center.
Beirut Exhibition Center A series of youth work-
shops for children between the ages of 7 and 12 to
Planet Discovery In collaboration with the French
Institute of Lebanon and Universcience in Paris,
Planet Discovery inaugurates a new exhibition titled
“The Human Puzzle,” based on an exhibition at the
Palais de la Découverte in Paris.
Beirut Chants EFA In its fifth season, Beirut Chants
becomes a proud member of the European Festivals
Association. The EFA is a prestigious association com-

national Lighting Design Award and one of seven
who earn an Award of Excellence during the 29th An-
nual award ceremony from the International Associa-
tion of Lighting Designers held in Las Vegas, USA.
GeoSpatial World Excellence Award Solidere and
Khatib & Alami win the GeoSpatial World Excellence
Award in the category of Application of Geospatial
Technology in Facilities Information Systems, for the
design, development, and implementation of the
Beirut Souks Project.
learn about art forms and styles and explore their
own creativity.
Portal 9 A journal of stories and critical writing about
urbanism and the city is launched in the effort to con-
tinually support cultural platforms and interact with
the intellectual and academic communities. Portal 9,
a semiannual Arabic and English journal, blends cre-
ative writing, photography, and personal essays with
academic scholarship, perceptive journalism, and cul-
tural critique.
12
prised of top international festivals. It is one of the
oldest cultural networks in Europe, founded in
Geneva, Switzerland in 1952 as a joint initiative of the
eminent conductor Igor Markevitch and the great
philosopher Denis de Rougemont.
Fête de la Musique Award Launched 12 years ago
and organized in collaboration with the French Embassy
and the Ministry of Culture, Fête de la Musique wins the
Best Music Festival Nightlife Awards 2012, Reader’s
Choice, TimeOut Beirut.
 Corporate Infrastructure Development Restoration Archeology Landscape

Based on its accomplishments to
date, Solidere consolidates its fi-
nancial and operational poten-
tial and embarks on a new
development program that
spans the coming five years.
The program concentrates on
the completion of infrastructure
works and the development of
major components intended as
poles of attraction in the Water-
front District, such as the East-
ern Marina, as well as the land-
scaping of the Corniche prome-
nade and the seaside city park.
In terms of real estate develop-
ment, the program spans the
planning and design of several
key projects of different land-
uses that complement existing
ones, with particular focus on
enhancing the social and cultural
dimensions in the city center.
International marine structure
consultancy firm COWI (Den-
mark) presents a preliminary de-
sign for the Eastern Marina,
which gains approval from the
Council for Development and
Reconstruction on the condition
that it be tested in a 3D model to
meet wave and stability criteria.
The 400-space parking garage
underneath the Corniche Road,
undertaken on behalf of the
State, is open and serving the
new, adjacent Zaitunay Bay
quayside restaurant strip. Two
other parking facilities are under
study in the Waterfront District:
a second lot beneath the Cor-
niche Road and a lot beneath
the planned waterfront city park.
Following the expansion of the
Lebanese international internet
links, bandwidth capacity allot-
ted by the Ministry of Telecom-
munications is increased,
offering city center tenants the
highest internet speeds available
in the country.
Beirut Souks celebrates the offi-
cial opening of the Jewelry
Souks with its glittering shops.
Planet Discovery, the children’s
science museum (previously lo-
cated next to the Starco Center),
reopens in Souk Ayass. The
Venue, a multipurpose space,
begins to host exhibitions and
special events.
In Wadi Abou Jamil, several
developments reach completion
while others are in their finish-
ing stages. Together they give
shape to the hillside sector that
will soon join Saifi as another
low-rise, residential neighbor-
hood based on the Lebanese
vernacular tradition, with narrow
streets, tight sightlines, and cul-
de-sacs that encourage slow
driving.
Excavations for the Landmark of
Beirut project in the Ghalghoul
sector, designed by Jean Nouvel
(France), begin and on-site
archeological finds are studied
and documented before con-
struction starts.
Nearby, works on the Grand
Théâtre are delayed until the
Landmark of Beirut project nears
completion.
International architectural design
competitions are launched for the
mixed-use development on Patri-
arch Hoyek Street in the Serail
Corridor and the Triple-A office
building in the Hotel District.
Zaitunay Bay inaugurates its
quayside restaurant strip. Serv-
iced by valet parking and a park-
ing facility underneath the
Corniche Road, and also accessi-
ble from seven pedestrian points
along the Corniche Road, Zaitu-
nay Bay welcomes more than
3,000 visitors per day in the first
six months after opening. The
development’s rich culinary
scene consists of 17 restaurants
and cafes, providing a new en-
tertainment destination and cre-
ating numerous employment
opportunities. Retail outlets, a
water sport center, and an art
workshop complement the din-
ing experience and turn the
promenade into a family-
friendly space.
The Maghen Abraham Syna-
gogue joins 17 other places of
worship – mosques, churches,
and shrines – that have been re-
stored to exhibit their architec-
tural beauty and historical
significance. Together with the
newly developed Mohamad Al
Amin Mosque, they attest to the
spiritual value of central Beirut.
Proposals are solicited from
museologists and exhibition
designers for the 1,345 sq m
Phoenico-Persian Quarter site
museum in Beirut Souks. The
museum houses the foundations
of a residential quarter from the
late 6th century BC where mer-
chants resided and engaged in
maritime trade. Under the direc-
tion and supervision of the Di-
rectorate General of Antiquities,
which has just completed the
site’s preservation, the aim is to
highlight the archeology by cre-
ating a multisensory, interactive
experience.
On Uruguay Street, Imad
Gemayel Architects designs a
U-shaped pedestrian area sur-
rounding a restored building
adjacent to the Samir Kassir
Garden; the space takes its
inspiration from the keys of a
piano. Relatively narrow in
width, the plaza is dedicated to
open-air seating and pedestrian
activity as extensions of the
ground-level commercial spaces
leased to pubs and restaurants.
Uruguay Street and the plaza
quickly become a hub of after-
work activity and nightlife.
Two other spaces are inaugu-
rated around the same time:
Zeytouneh Square, designed
by Gustafson Porter (US/UK) as
part of the Shoreline Walk, and
the Gebran Tueni Memorial,
designed by Vladimir Djurovic
Landscape Architecture as a space
for tranquility and reflection.

The multiuse development will

include a 27-floor hotel and
apartment tower overlooking
Riad El Solh Square, two 10- and
12-floor buildings containing
! — 17

furnished apartments, commer-

cial space, a health club and spa,
16

and a cinema entertainment

complex at basement levels. The
design takes its inspiration from
the daily social life of the city
and includes pedestrian walk-
ways to reflect a continuity of
movement.

Lighting Beirut Architecture Lighting Beirut Architec-

ture is launched as a new architectural lighting concept
using the principle of image projection. The aim is to il-
luminate selected heritage and contemporary buildings
in Beirut city center’s historic core and permanently illu-
minate the city center’s architectural nightscape. The
project is developed with Light Cibles (France), DIAP
(France), Mamari Frères, and Lampo (Italy).
iF Communication Design Award Solidere’s 2009
Annual Report “Beirut City Center” is declared an iF
Communication Design Award winner.

World Architecture Festival The Shoreline Walk

design by Gustafson Porter (US/UK) is shortlisted at
the World Architecture Festival in the category of Fu-
ture Landscape Projects.
11
 Corporate Infrastructure Development Archeology Landscape

Solidere reiterates its develop-
ment strategy to focus on creat-
ing shareholder value by
investing in its land bank, in-
creasing recurrent income, diver-
sifying into complementary
business lines, and expanding its
presence outside Lebanon. The
objective is to shape the market
and control the supply and qual-
ity of new development in spe-
cific key sectors. This includes
detailed planning and more di-
rect control of temporary uses,
which will likely encompass
most activities in the Waterfront
District for the next five to ten
years, serving as testing ground
and incubators for new uses that
may emerge in time as perma-
nent features of the city center.
Beirut Hospitality Company
Holding is established with the
goal of creating restaurants that
complement and support real
estate development and enhance
property value, and therefore en-
hance vibrancy in the city center.
18 — 19
Solidere is invited to join a net-
work of urban operators includ-
ing city mayors and public and
private urban development
agencies, which together repre-
sent a group of cities around the
Mediterranean. Initiated by the
Med-Cities program in Mar-
seilles and funded by the Euro-
pean Investment Bank (EIB), the
World Bank, and Caisse des
Dépots (France), the network
aims to develop a set of shared
guidelines for sustainable urban
development in a period of cli-
mate change. Within the net-
work, the Waterfront District is
presented as a model for sus-
tainable urban development and
a test bed for environmentally
sound urban futures.
A strategy is being developed to
complement the proposed land
uses and provide pedestrian
connectivity between key areas
in the Traditional City Center
and Waterfront District. This will
be achieved by adding green cor-
ridors that run north to the Cor-
niche, east to the Beirut Port’s
first basin and future Eastern
Marina, and northeast toward
the view of the mountains.
Moving toward developing the
reclaimed land, an agreement is
signed with Laceco Architects &
Engineers for the detailed design
of underground infrastructure
and road asphalting in the Wa-
terfront District. Wilmotte &
Associés (France) is selected to
design street furniture, while
Chris Blandford Associates (UK)
is asked to take charge of land-
scaped features, including side-
walks, shared surface and
pedestrian streets, medians, and
traffic islands.
With increased investor interest
in land in the Waterfront District,
Ove Arup International (UK)
undertakes a study on multi-
modal transportation require-
ments for the district and
delivers an area-wide trans-
portation strategy. The study
takes into account environmen-
tal considerations and provides
consultation on suitable infra-
structural provisions.
The Council of Ministers re-
solves to tender the Martyrs’
Square parking facility as a
build-operate-transfer project,
while Beirut Municipality de-
cides to cancel the planned
parking lot underneath Riad El
Solh Square due to archeological
Following the commencement of
business for several food and
beverage outlets on the famed
Ajami Square, as well as numer-
ous openings of world famous
boutiques, Beirut Souks Core
celebrates its official inaugura-
tion with four days of spectacu-
lar performances and events. The
Souks Core reaches near maxi-
mum tenancy, and the newly
opened Jewelry Souk is more
than 50 percent occupied. Mar-
keting campaigns launch and a
number of activities are organ-
ized to promote the Souks as an
international shopping, cultural,
and social venue.
The few land plots still available
in Saifi undergo concept design.
One such area, located at Saifi’s
northern end, welcomes the
launch of the District //S project.
Designed by Allies and Morrison
Architects (US) with R & K Con-
sultants, it is planned as a 16-
building, open-gated, pedestrian-
friendly community that draws
people to its outdoor piazzas,
terraces, and arcaded retail
stretch through meandering al-
leyways. The project will provide
a northern extension to Saifi Vil-
lage, following the same design
guidelines but in a contemporary
architectural expression.
The concept for Martyrs’
Square Axis is further devel-
oped in a detailed urban design
study by Renzo Piano Building
Workshop (Italy/France), sup-
ported by transport planning
consultant Arup (UK). The pre-
liminary plans are submitted to
the Council for Development
and Reconstruction, which is
preparing the build-operate-
transfer bid for the Martyrs’
Square underground parking fa-
cility in cooperation with its con-
sultant, Khatib & Alami.
Renzo Piano’s proposal recog-
nizes the national value of this
public open space, noting its
great importance in relation to
the surrounding built environ-
ment. The proposal frames the
square as a natural space where
the city expresses its civic life
and urbanity manifests the con-
junction of shared experience. It
also recognizes the role of Mar-
tyrs’ Square in particular as a
meeting place where diversity
becomes an opportunity rather
than a problem, where different
routes merge into the enduring
life and spirit of Beirut, bringing
a sense of belonging to the city.
The scheme conceives of Mar-
tyrs’ Square as a sequence of
These afford a direct pedestrian
link, beneath Cadmous Street, to
the planned City History Mu-
seum site, Ancient Canaanite
Tell, and the waterfront beyond.
While studies are conducted on
the Martyrs’ Square area, a new
development rises at the north-
western point of the axis. The
CMA-CGM Merit Corporation
headquarters, designed by Nabil
Gholam Architects, exemplifies a
response to location and func-
tion; like a ship anchored at port,
it reflects the maritime world.
Within the Waterfront District
development program, a tempo-
rary usage strategy is initiated to
focus on a pedestrian spine link-
ing the existing city center and
Souks to the terraced waterfront
Corniche promenades. This
spine is now open for walking,
jogging, and cycling leading
north down to the waterfront
promenade.
Renzo Piano Building Workshop
is asked to study the “Pinwheel
Project,” a strategically located
site in the Waterfront District
near the Beirut Port’s first basin,
north of the historic Foch-Al-
lenby area and its modern exten-
sion. The site is defined by four
Two site-specific archeological Limited design competitions
museums reach completion. The are held for the redesign of the
first is the Crypto Portico Mu- Roman Baths Garden and Omar
seum beneath the Parliamentary Daouk Square, as well as the ini-
Office Building, featuring part of tial design for Khan Antoun Bey
the site of the Roman Forum. An Square in the northern part of
omphalos (a round granite block Beirut Souks and the 80,000 sq m
representing the navel or exact waterfront city park. Gillespies
center of the city from which all (UK) presents the winning de-
distances were measured) stands sign for the first two locations,
before a series of blind arches while PROAP (Portugal) wins the
that once lined the street, com- third. No winner is announced
plete with its original checkered for the waterfront city park.
black-and-white tiled pattern.
Due to its high-security location, With the Beirut Souks newly
the museum is not yet open to opened, Ajami Square begins
the public. to bustle with activity, hosting a
number of restaurants, a weekly
The second institution is the farmers’ market, and several hol-
Crypt Museum, now open to iday festivities.
the public on the site of the for-
mer Byzantine church beneath
St. George Greek-Orthodox
Cathedral on Nejmeh Square.
The museum showcases eight
layers of archeological remains
including six churches from the
Hellenistic period to the present.
Near the Ring Road and the Ar-
menian Catholic Church, exca-
vations expose the remains of an
enclosure wall and tower built in
the early years of the Roman
colony of Berytus. They are set to
become part of the landscaped
surroundings of the residential

considerations.
A special software for Digital
Asset Management is introduced
to track, archive, and control the
use of graphic documents and
photographs within the relevant
divisions of the Company. The
physical network continuously
undertakes upgrades to supply
connectivity to new buildings, in-
stalling the latest switches to up-
grade its core network functions.
spaces that transition from the main arteries forming a pin- project currently under develop-
The concept design for the city to the sea. It starts at the wheel and is intended to be a ment at the site.
Grand Théâtre is reviewed with “gateway” beneath the Ring landmark gateway to the new
Roger Stirk Harbour + Partners Road, opening out at the south- district.
(UK) and submitted to the Di- ern end of the square and mov-
rectorate General of Urban Plan- ing north past the famous
ning. The design proposes the martyrs’ monument, then down,
theatre as a centerpiece of the at the northern end of the
city for performances and public square to the Petit Serail and
use, including a ballroom. The Hellenistic remains.
hotel proposal focuses on unit-
ing the site with its neighboring
historic buildings (to the north
and east) and contemporary ad-
ditions (to the south and west).
The historic arcaded street front
remains occupied by retail units.

Beirut Exhibition Center With the aim of enhancing

the city center as a cultural destination, a 1,200 sq m
space is dedicated to promoting and developing
greater recognition and appreciation of contemporary
art throughout Beirut and the greater region. The non-
profit space provides a collaborative environment for
art museums, galleries, artist collectives, and cultural
institutions. Exhibitions are drawn from artists’ proj-
ects created on-site, collaborations among galleries,
traveling museum shows, and a full calendar of public
art programs. The structure’s design by L.E.FT (US)
embodies the building’s purpose as the mirror facade
reflects the continuously changing landscape of the
Waterfront District and turns the city into a work of art.
Information Center A new, state-of-the-art Infor-
mation Center is under design. It will be located in the
office building in Beirut Souks. In the meantime, the
city center model is moved to a temporary location
near the central square of the Jewelry Souk. 10
 Corporate
The Waterfront District elicits
strong investor interest with
land sales totaling 198,735 sq m
of built-up area (BUA) to date.
The real estate development is
planned to reach an aggregate
1.7 million sq m. In-house urban
studies are in progress on build-
ing massing, land use, phasing,
and land sales strategies for the
district. Permanent development
is set to start around the periph-
ery of the street grid for the
planned Eastern Marina. The
central blocks will be developed
gradually, replacing temporary
uses to house a convention cen-
ter, offices, hotels, serviced
apartments, and mixed-use sup-
port facilities for the special
business district.
! — 21
20
Beirut World Book Capital Lebanon’s capital city
was designated UNESCO World Book Capital 2009. In
that regard, several events celebrating books were held
around the city center.
A mandated low-carbon strategy
is implemented throughout the
Waterfront District, which will be
planned, designed, and built as a
model project of sustainable
urban development. The guide-
lines, customized to suit Beirut’s
climate and environment, in-
clude applying renewable energy
technologies, recycling grey
water, and adhering to other so-
phisticated environmental regu-
lations. These efforts are
intended to deliver a combina-
tion of low-carbon output and
substantial reductions in energy
demand.
Capital Issues Award Solidere received the Capital
Issues Award in the category of Architectural Excel-
lence for Beirut Souks.
Infrastructure
Beirut Municipality reexamines
ways to build the Martyrs’
Square parking facility, either by
funding it internally, negotiating
a build-operate-transfer (BOT)
contract with Solidere, or tender-
ing it out on a BOT basis. It also
approves the Landmark of Beirut
project proposal to execute the
parking lot under Riad El Solh
Square on a BOT basis.
All four underground levels in
the southern part of the Beirut
Souks parking facility are opera-
tional with about 2,100 spaces
for public use; the northern part
is reserved for companies work-
ing in the city center. Solidere
awards the works for a 400-
space parking lot underneath
the Corniche to Geneco, and
construction begins.
Development
Beirut Souks Core is in a soft
opening phase with about 149
(140 retail, 8 food and beverage,
and 1 food hall) of the 225 out-
lets occupied or nearing comple-
tion. With the help of several
professional advisors, a specific
tenant-mix approach is devel-
oped to strategically place exclu-
sive concept and stand-alone
boutiques and restaurants
among flagship and other traf-
fic-generating stores.
Storefront design specifications
and guidelines are introduced to
provide tenants with clear direc-
tion for interior construction
works, leading to harmony and
consistency. Site supervisory vis-
its are conducted on a regular
basis for quality control. Shop
fitting takes place in coordina-
tion with architectural consult-
ant Samir Khairallah & Partners.
Even as it follows the ancient
Roman street grid, the modern
Beirut Souks is suitable to a con-
temporary lifestyle. The land-
scaping integrates a number of
archeological features and his-
torical squares and monuments,
including the sunken courtyard
of the medieval wall and moat
below Souk Al Jamil, the un-
earthed late Phoenico-Persian
harborside settlement under
Souk Ayyas, the Zawiyat Ibn
Arraq Shrine, and the restored
mosaics from Byzantine shops in
Souk Al Franj. These are further
enhanced by commissioned
contemporary public artwork
such as the “Visitor” on Sayyour
Square by Arne Quinze (Bel-
gium) and sculptures by Xavier
Corbero (Spain) on Bab Idriss
Square representing Roman fig-
ures on the way to the Hippo-
drome.
Following initial attempts to
transform the 1930s Grand
Théâtre des Mille et Une Nuits
into a significant, modern-day
theatre, it is concluded that the
endeavor will not be possible
without partial demolition fol-
lowed by faithful reconstruction
of the street facade. Several site
constraints hamper the possibil-
ity of obtaining a quality per-
formance space: the small size
of the auditorium and stage, the
shape and volume of the audito-
rium shell, the lack of backstage
facilities, poor sight-lines, and
poor acoustics.
While the structure may never
serve as a successful modern
theatre, Solidere is determined
to restore it in order to preserve
and honor the memory of the
Grand Théâtre. Following a lim-
ited design competition among
four international architecture
firms – Rogers Stirk Harbour +
Partners (UK), Anouska Hempel
Design (UK), Moatti et Rivière
(France), and Architecture Stu-
dio (France) – Roger Stirk Har-
bour + Partners emerges as
winner and will collaborate with
runner-up Anouska Hempel De-
sign on space planning and inte-
rior design.
The alignment of new develop-
ments is almost complete on the
Serail Corridor’s main avenue,
Francois El Hajj Street, with de-
velopments like the Palladium
mixed-use building, designed by
Dash Architects (UK) and R & K
Consultants; 45 Park Avenue,
designed by Laceco; Luna One,
designed by Diyar Consultants;
and Park Palace, designed by
Fouad Meneem.
Archeology Landscape
The rehabilitation of Martyrs’ In the vicinity of Riad El Solh Vladimir Djurovic Landscape Ar-
Square Axis is of strategic im- Square, burials spanning the chitecture delivers the first of the
portance for the completion of Omayyad and Ottoman periods Shoreline Walk spaces, Mina El
the Traditional City Center. confirm that the site became a Hosn Square between Platinum
Awaiting the construction of the cemetery after the city wall de- and Beirut towers, following
parking facility underneath the fined an open area just outside Gustafson Porter’s (US/UK) con-
square, the project is revived. A the Bab Dirke and Bab Yaqoub cept design for the corridor.
new urban design study is un- city gates. The corner of a large
dertaken with leading architec- temple platform is exposed The sloping Rafic Hariri Sculp-
tural firm Renzo Piano Building below the cemetery. Subject to tural Garden near the Grand
Workshop (Italy/France) to in- agreement with the Directorate Serail, redesigned by Vladimir
corporate detailed guidelines for General of Antiquities, some of Djurovic Landscape Architecture,
building massing and land use these vestiges will be incorpo- is executed by Target. A sculpture
around the square. A more rated into the various construc- by Meguerditch Mazmanian de-
human-scale vision emerges to tion projects. picts the late prime minister
soften the square’s memorial walking along the water feature.
and ceremonial character and,
with its new green corridor open
to the sea, help recover its role as
Beirut’s most important public
space and the center of city life.
Meanwhile, Bab El Saray devel-
opment is inaugurated in the
square’s northwestern section
as the Le Gray Hotel, exuding
contemporary style while blend-
ing seamlessly with its historic
surroundings.
The proposed Formula One
inner-city circuit is abandoned
for security reasons, freeing both
the waterfront city park and the
street network of the Water-
front District from many oner-
ous constraints.
After a fast-track approach ac-
celerates construction of the
yacht club’s underground struc-
ture, works are completed in the
development around Beirut Ma-
rina. Hourie–Profond continues
the dewatering process until the
beginning of superstructure con-
struction, negotiated with the
firm to commence midyear,
while enabling and ground sta-
bilization works on the quayside
strip reach completion. The de-
velopment is marketed and
branded as Zaitunay Bay, and
landscape concept and design is
awarded to Vladimir Djurovic
Landscape Architecture with de-
09
tailing and supervision by CBA
Group.
 Infrastructure Development

In addition to the internet and
VPN services, Broadband Net-
work launches its IPTV service
for Beirut city center residents.
This project offers greater value
to customers by providing seam-
less delivery of high-quality
video, the most promising av-
enue for value-added services.
Mores (Lebanon) is appointed
environmental consultant for re-
mediation and treatment and
tasked with monitoring the gen-
eration of landfill gas from back-
filled materials through
boreholes in the park area. Land
treatment and reclamation are
complete, and the Waterfront
District is ready for infrastructure
works to prepare the land for fu-
ture development.
! — 23
22
New developments inspired by
the surrounding architectural
styles complete the urban fabric
of the Conservation Area,
which is predominantly home to
restored buildings. Among them
are projects such as Fochville
residential development, de-
signed by R & K Consultants,
and the Municipality Annex, de-
signed by Nabil Azar. The Con-
servation Area represents the
epitome of urban rejuvenation.
The Ministry of Culture an-
nounces its intention to develop
a House of Arts and Culture, a
space devoted to education, per-
formance, fine arts, culture, and
interactive and multidisciplinary
exchange. Located near the Ring
Road, the site will become State
property as part of a land swap
with Solidere. The ministry com-
missions Gaia-Heritage to de-
velop a brief for the House, along
with cultural and educational ob-
jectives, an architectural program,
and a communications strategy.
Following an open international
architectural design competition,
the project design is awarded to
Alberto Catalano (Italy). The
project receives funding from a
grant by the Sultanate of Oman
to the Ministry of Culture.
In developing the lot adjacent to
the Souks in the Serail Corridor
on Patriarch Hoyek Street, the
initial vision of creating a fifth
retail anchor has evolved in
favor of combining hospitality,
retail, and entertainment, thus
complementing rather than
competing with Beirut Souks.
The program envisages a bou-
tique hotel, an exclusive spa, and
adjoining retail. International ar-
chitects are preselected to partic-
ipate in a design competition. A
retail strategy study is conducted
by MXD Consultants (Canada)
to guide configuration concepts
related to the boutique hotel, the
street, and Beirut Souks. Talks
with international boutique
hotel operators begin.
In the nearby Hotel District, a
Triple-A, multi-tenancy office
building is in the planning stage.
The office of Jones Lang LaSalle
(US) undertakes a market re-
search and development advi-
sory study.

Starch Rabih Kayrouz and Tala Hajjar in collaboration
with Solidere found Starch, a non-profit organization
that helps launch emerging Lebanese fashion design-
ers. Four to six young designers are selected each year
and guided through the process of developing and
then promoting their collections (communication,
marketing, branding, and press). These collections are
then displayed for one year at the Starch boutique in
Saifi Village. Throughout the year, the designers also
have the chance to participate in design-related work-
shops, seminars, and collaborations.
Beirut City Center Larry McPherson’s photographic
documentary of the downtown reconstruction docu-
ments the transition from war-torn capital to refined
city center. The book showcases archeological sites
transformed into public areas, meticulously restored
Ottoman and French architecture, gardens, and seam-
lessly integrated new construction, conveying both the
practical and symbolic importance of building again.
08
Beirut 1991 (2003) A photography book by Gabriele
Basilico is published as part of a project dedicated to
the memory of the Beirut war. The internationally
renowned, award-winning Italian urban photographer
reflects upon the destruction of a city and the blue-
print of its future.
 Rania Sassine
on Building the Solidere Brand
and Learning across Generations
Rania Sassine holds a Master's in Urbanism from
La Sapienza, Università di Roma, Italy, and a Mas-
ters in Architecture from the Academie Libanaise
des Beaux-Arts. She joined Solidere International
in 2008 soon after its inception and is currently the
head of the Urban Design and Master Plan Unit.
In 2007, Solidere established Solidere International to respond to
the demand from governments, municipalities, landowners, and
investors seeking to emulate the accomplishments of the Com-
pany in Beirut city center in their own cities. What elements of
the project elicited the greatest interest and demand?
In undertaking the reconstruction and development of the city center,
Solidere has had the responsibility of understanding the area’s history
and geography and establishing its future position in the region –
understanding its surroundings and integrating it within them. That
is what the company has gained a large amount of experience in – this
is the expertise that Solidere is exporting outside the city center today.
Solidere International is leveraging Solidere’s experience in
creating“Places for Life.”These are urban environments, primarily
mixed-use in nature, that are viable and sustainable over time. The
success of any urban development depends on how it prioritizes
basic human and social needs as core principles and adapts planning
and architectural design to a particular context.
How do you as a planner conceive of the relationship that com-
munities create with urban space?
How can cross-generational learning benefit urban planning and
design? What does each generation bring to the project?
Cross-generational learning is quite important. It ensures that expe-
rience and ideas are transmitted between the generations just as it
lessens the negative repercussions of competition between peers.
One cannot invent the wheel every time. Learning is a process that
accumulates through the generations.
The best mentors I’ve ever had are those who taught me
not how to draw but to open my eyes to what is around me, who
changed the way I perceive space, challenged me to conceive of mas-
ter planning not as a job but as a vocation that you carry with you
every time you step outside and walk through the city.
Architectural and planning careers involve a long process
of learning and practice. Although more in terms of experience than
knowhow is transmitted from the older generations to the younger
ones, the latter always brings in fresh ideas and new outlooks, which
when intertwined with experience generate amazing results in the
built environment.

An urban environment, in the words of Yona Friedman, a famous

French architect of the 1950s and 1960s, is about living, working,
recreation, education, and culture. Before you begin designing the
details, you have to plan the greater scheme. You have to study the
urban site’s location and accessibility. Then, a development strategy
is set: the type of development and who it caters to. So there is the
question of lifestyle as well as the social and physical aspects of the
urban environment. In that regard, urban planning must integrate
daily, monthly, and yearly activities in its land use strategy. Solidere
has an extensive multidisciplinary team and consults with experts
when needed, and is thus able to cater to these complexities, to the
layers of human interaction with the space.

Can you give us a personal example of how a relationship grows

with an urban environment? How did your relationship with
Beirut city center evolve?
! — 25

I belong to the generation that was born at the start of the Lebanese
war. I basically had no direct relationship with the city center before
24

the mid 1990s other than knowing that it was destroyed and hearing
the stories that my parents told about it. With the many chapters of
the war behind me, I began building my own story with the place,
forging new ties, first while I was pursuing my studies in architecture
and later on when I started working. The way the city center was
planned helped the familiarity grow. The variety of uses incorporated
into its planning attracted me to the area.

How has Solidere translated the expertise it has gained in city

center rejuvenation to the development of other real estate proj-
ects around the region?

There are certain principles that are implemented in all our projects,
but they are not physically the same. For example, in all urban envi-
ronments there must be a main street where you have certain activi-
ties, including an open space and cafes. In one environment, it could
be made up of heritage buildings and arcaded frontages; in another,
its materials are glass and steel.
In an urban project in Saudi Arabia, there must be a large
retail component, but it cannot look and feel like Beirut Souks in
Lebanon. Another example would be the interpretation of gathering
places. In western societies, it usually is a large axial, open square be-
cause they have such wet winters, and the minute the sun comes out
the people tend to go outside. In warmer climates, such as in the
Gulf countries, people gather in inner courtyards with shaded gal-
leries because the sun is harsh almost all year around. So climate,
culture, and architecture are all interrelated.
 Corporate Infrastructure Development Landscape

Following its success in Beirut,
Solidere receives requests from
governments, municipalities,
landowners, and investors
around the world to help them
emulate the Company’s accom-
plishments in Beirut city center.
After amending its bylaws, the
Company establishes Solidere
International (SI) as a limited
company in shares under the
law of Dubai International Fi-
nancial Center (DIFC), with a
paid capital of US$700 million;
Solidere owns 39 percent of SI.
The company begins to identify
projects in the Middle East,
Africa, and around the Mediter-
ranean Basin where it can create
urban destinations and real es-
tate developments that form vi-
able communities.
The Beirut Municipality starts to
subcontract the operation and
maintenance of works handed
over by Solidere, which contin-
ues to supervise and control the
quality of work done by the con-
tractors and subcontractors.
Implementation of the Broad-
band Network (BBN) is com-
plete. The pilot project begins
upon receipt of the bandwidth
from the Ministry of Telecommu-
nications for testing.
Under a unified communication
network, data (internet) and
video (TV) is now provided, op-
erated, and monitored through
the Network Operation Center
(NOC), which hosts a data cen-
ter, call center (IPCC), and other
equipment and servers for the
various services. Beirut city cen-
ter thus transforms into an
around-the-clock IT zone capa-
ble of attracting multinational
companies and other residents
who will benefit from the avail-
ability of multimedia and broad-
band communication services.
Construction begins on develop- Olivier Vidal (France) is commis-
ments in the Foch-Allenby re- sioned to design the Bab Idriss
gion of the Conservation Area, Square and incorporate sculp-
including Foch 126, designed by tures by Xavier Corbero (Spain)
Nabil Gholam Architects; Foch evoking figures on their way to
residence, by Batimat Architects; the Hippodrome. The site stands
Fochville, by R & K Consultants; on the street that leads to the re-
and Starway, by Nachaat mains of the Roman racecourse
Owaida. gates.
More projects launch in Saifi,
including both restoration and
new developments. Among
them are Saifi Khan, restored in
accordance with Elias Issa’s de-
sign; Saifi Village Two, designed
by Nabil Gholam Architects; the
Selwan building, designed by
Nabil Azar; and Al Mashrek
Insurance Company, also by
Nabil Azar.
Berytus Parks, designed by Pierre
El Khoury Architects, is inaugu-
rated in the Serail Corridor on
Francois El Hajj Street, along
with Two Park Avenue, designed
by Samir Khairallah & Partners,
and other new developments.

All land reclamation, including

excavations, processing of the
materials, and backfilling,
reaches completion. The sorted
plastic stockpile is successfully
! — 27

relocated to an abandoned
quarry site outside Beirut in ac-
26

cordance with permits issued by

the relevant public authorities
and following specifications
from the Ministry of the Envi-
ronment, which fully supervises
and monitors the backfilling of
sorted plastics into the quarry.

Beirut Chants A festival of sacred music that com-

bines spirituality, culture, and history is launched as an
annual end-of-year event. The music performed draws
primarily on spiritual and ethnic musical traditions,
mainly addressing the Nativity. The festival’s concerts
are held in the churches of Beirut city center, presenting
a communal activity in spaces of history and beauty.
Beirut Jazz Festival After its 2004 inauguration fol-
lowed by a three-year intermission, the Beirut Jazz
Festival makes its comeback in the public open space
of Ajami Square in Beirut Souks, which is still under
construction. The Jazz Festival is planned as an annual
three-day concert event hosting local and interna-
tional artists.
GIS Award To acknowledge its outstanding use of
GIS technology, Solidere receives the Special Achieve-
ment in GIS Award from ESRI, world leader in GIS
software and applications.

Aga Khan Award Samir Kassir Square, designed by

Vladimir Djurovic Landscape Architecture, wins the
Aga Khan Award for Architecture.
07
 Corporate
Solidere Management Serv-
ices (SMS), a 100 percent owned
subsidiary, is established to pro-
vide construction management
and a broad scope of services as-
sociated with real estate develop-
ment: program definition,
marketing, design control, client
representation, financial manage-
ment, sales, and post-construction
operation and maintenance.
In preparation for the future
development of the Waterfront
District as a comprehensive
mixed-use area, Beirut city cen-
ter is marketed and promoted as
a corporate international busi-
ness center, based on the city’s
lifestyle assets and skilled human
resources. Indeed, Beirut’s com-
petitive edge lies in the qualities
of its people and services.
! — 29
28
Habitat II Istanbul Selected as one of the 100
Global Best Practices displayed at the United Na-
tions Conference on Human Settlements, the Beirut
city center resonstruction project was on exhibition
throughout the conference and became the focus of
international media.
As part of property manage-
ment, a high level of control is
maintained over the implemen-
tation of safety rules and regula-
tions as well as the approval of
signage and storefront designs.
Solidere continues to offer its
knowhow and services to third-
party owners, entering into
agreements through its sub-
sidiary Solidere Management
Services for the marketing, man-
agement, and maintenance of
their properties.
Souk El Barghout In its seventh edition, the flea
market held on Martyrs’ Square featured a well-re-
ceived public auction of contemporary Lebanese
paintings.
Infrastructure
An agreement is signed with Or-
ange, a member of the France
Telecom Group, to build and op-
erate a full IP network. The new
system will use advanced tele-
com technology based on a
fiber-optic backbone with dual
connections to each building in
Beirut city center.
To expedite completion of the
land treatment and reclama-
tion, Hornagold & Hills Interna-
tional–H2i (UK) is appointed as
construction manager, and the
project is split into operations
packages awarded to three
separate Lebanese contractors:
Société Contemporaine de
Développement, Assaf & Coex,
and Alfarah Co.
Development
Several amendments to the
Master Plan are approved by de-
cree in response to more de-
tailed urban and traffic studies,
new archeological discoveries,
necessities related to the distri-
bution of public and private do-
main, and other reasons related
to specific developments and to
land swaps between the State
and Solidere.
Amendments to the detailed
master plan for the Ghalghoul
Sector are ratified by the Council
of Ministers. They include the
transposition of a tower south of
Amir Amin Square to the site of
a new development north of the
garden, called the Landmark of
Beirut. The decree approves the
development concept designed
by Jean Nouvel (France), grant-
ing it specific exemptions from
Beirut city center and Lebanese
construction regulations. These
exemptions involve canceling
street-wall controls, building
height limits, modifying pedes-
trian passages, bypassing certain
technical issues, and ignoring
the requirement to provide land-
scaping on 50 percent of unbuilt
areas.
In Wadi Abou Jamil, the own-
ers of a 1911 neo-gothic palace,
originally built as the home of a
Lebanese politician and art col-
lector, restore the building into
the Robert Mouawad Private
Museum. The new institution
houses valuable objects from
oriental and occidental cultures,
as well as a collection of rare
books.
Bernard Khoury is commis-
sioned to prepare an alternative
concept design to Jerde’s scheme
for the mixed-use development
on Patriarch Hoyek Street in the
Serail Corridor. The architect
adopts a radically different ap-
proach, creating a landmark
building in pyramid form that
spans across a central courtyard.
The Greek team prepares the
concept design for the under-
ground parking facility planned
beneath Martyrs’ Square. The de-
sign will be used to relaunch the
project on a build-operate-trans-
fer basis. Meanwhile, amend-
ments to the master plan for the
Martyrs’ Square Axis are pre-
pared. A cultural strategy is also
initiated in coordination with
Gaia-Heritage to culminate in
the identification of a series of
cultural sites in the city center,
including the Beirut City History
Museum.
Archeology
The land use strategy is under- Excavations in the Wadi Abou
taken in-house, with Gaia-Her- Jamil area yield vestiges of the
itage consulting on cultural ancient Roman Hippodrome,
strategy. It envisages a cultural a large club building used by
axis running through Martyrs’ participants in the chariot races.
Square and linking Saifi Village’s Archeologists uncover two parts
Quartier des Arts with the Dome of the racetrack’s median, or
and the planned Rafic Hariri Li- spina. Subject to agreement with
brary, City History Museum, the Directorate General of An-
Hariri Conference Center, and tiquities, these artifacts will be
other cultural facilities. incorporated into Wadi Abou
Jamil Square.
Steven Holl Architects (US)
teams up with Nabil Gholam Ar-
chitects to complete the detailed
design of development around
Beirut Marina, while Dada &
Associates is commissioned to
undertake the interior design.
Beirut Waterfront Development
also launches a design-and-
build tender for the yacht club’s
underground structural work
and the construction of three
basement floors. The commis-
sioned contractor, the joint ven-
ture Hourié–Profond, begins
enabling works for the structure
based on a design endorsed by
Solétanche Bachy (France).
06
 Corporate Infrastructure Development Landscape

After an extraordinary Company
General Assembly meeting in
1998 approved an amendment
to Article 4 of the Articles of In-
corporation to extend Solidere’s
duration from 25 years to 75
years, the Council of Ministers
now ratifies a decision to cap the
extension at 35 years starting
from the date of inception.
Seeing a trend of increased seis-
mic activity around the globe,
Solidere raises its benchmark
and establishes a criterion of 0.3
g acceleration for all new devel-
opments, especially those built
on reclaimed land. This up-
graded standard is incorporated
into the Development Briefs.
! — 31
In addition to the operation
and maintenance of infrastruc-
ture and public spaces until their
delivery to the State, the Com-
pany continually updates its site
logistics services. In a program to
improve the city center’s image,
undertaken in collaboration with
participating property owners
and users, a number of services
are implemented to supplement
those provided by the Munici-
pality: surveillance security;
door-to-door waste collection;
cleaning of the streets, side-
walks, and street furniture; pest
control; subterranean utilities;
maintenance of open spaces,
trees, and planters; and street
decoration during holidays.
A decree is ratified to regulate
the use of the municipal public
domain for commercial pur-
poses in accordance with a plan
prepared by Solidere. Areas ad-
joining Parliament and the
deputies’ office building are kept
free of possible obstacles for se-
curity reasons. Elsewhere in the
Conservation Area, restaurants
and cafes are allowed to use the
adjacent sidewalk or pedestrian
areas provided the seating
arrangements do not block
building entrances. A four-meter
wide pedestrian passage will
remain clear of outdoor furniture
along the center of each street.
Outdoor furniture used in the
public domain must conform to
Solidere’s specifications.
The Foch-Allenby Street private
parking, a joint undertaking of
common works initiated by
Solidere and owners of other
lots nearby, is now operational.
With the implementation of
broadband multimedia
telecommunications infrastruc-
ture, the city center now has the
potential to become a media and
communications hub, stimulat-
ing Beirut’s rapid adaptation to
the new economy and globalized
world of the Information Age.
Beirut Marina is fully opera-
tional in time for the start of its
fourth season. Pending comple-
tion of the buildings surround-
ing the marina, temporary cabins
are used for harbormaster and
public authorities’ activities (cus-
toms, immigration, police, and
army intelligence). The works as-
signed to Groupe Camille Rayon
(France) are complete, with all
utilities – water, electricity, fire
line, telecom/internet, and cable
TV – connected and functional.
All lots for which designs were
commissioned in Wadi Abou
Jamil are sold to third parties
along with their respective resi-
dential concept designs. Solidere
Management Services retains
the development management
of two properties: Noor Gar-
dens, designed by Porphyrios
Associates (UK), and Beirut
Square, designed by Giancarlo
De Carlo (Italy). The remaining
projects are Phoenix Develop-
ment and Stow Wadi, designed
by Porphyrios Associates (UK);
Wadi Grand Residence, designed
by Dar Al Omran–Bassem Bad-
ran (Jordan); Wadi Hills, de-
signed by Agence d’Architecture
Anthony Béchu (France); and
the Courtyard, designed by
Maha Nasrallah.
All of these residential designs
call for aligned, cohesive facades
along the streets of the sector,
and most have central court-
yards or gardens to offer a more
intimate residential ambience.
The traditional Lebanese house
finds its expression in some of
the tripartite arched windows,
loggias, and pitched roofs.
Solidere initiates a development
of its own (lot 800 Mina El
Hosn), designed by Ayman San-
The Directorate General of
Urban Planning approves the
Grand Théâtre’s concept design
by Architecture Studio (France).
The architect’s concept envisions
a boutique hotel with a rooftop
swimming pool, restaurants, and
bars with artistic performances.
Shops are located at street level
below the arcades, as was the
case before the building’s de-
struction.
In the Hotel District, work
commences on two new luxury
residential developments, two
international hotels, and a
mixed-use building: Capital
Plaza, designed by Machado and
Silvetti Associates (US); Garden
View, designed by Nabil Gholam
Architects; the Grand Hyatt
Hotel, designed by Michael
Graves (US) and Dar Al Han-
dasah; the Rotana Hotel, de-
signed by Architecture Studio
(France), selected among four
competition entries; and Bemo
House, designed by Lo Mauro &
Reggiani Associati (Italy) and
Raed Abillamah.
On May 6, Martyrs’ Day, the Two projects reach completion
winning concept for the Mar- in Wadi Abou Jamil: the open
tyrs’ Square Grand Axis is an- space near St. Elie Church with
nounced. It comes from a team a sculpture of Pope Jean-Paul II,
of four Greek associates: Ago- designed by Thibaud Urbanisme
rastidou, Babalou-Noukaki, et Paysage (France), and the
Ioannidou, and Noukakis, whose Wadi Abou Jamil Garden, de-
vision treats the Axis as a se- signed by Rafic El Khoury and
quence of four differentiated Partners. Among several land-
sections. An exhibition in the scaped areas now open to the
Dome showcases the 137 de- public is Samir Kassir Square,
signs submitted for competition designed by Vladimir Djurovic
and includes a public forum to Landscape Architecture, with a
discuss the top three designs life-sized sculpture of its name-
with the public. sake journalist, writer, and
teacher by Louis Debré (France).
New, residential developments
are initiated in the sector, includ-
ing Beirut Gardens, designed by
Arata Isozaki (Japan) and Erga
Group; Tower Plus One and Two,
designed by Arquitectonica (US),
also with Erga Group; and Beb
Beirut, designed by Arquitecton-
ica (US) with Atelier des Archi-
tectes Anonymes.
The 2001 sector plan for the Wa-
terfront District receives official
approval through a decree by the
Council of Ministers.
Beirut Waterfront Development
s.a.l. commissions a market
study from the restaurant con-
sultation firm Ulysses (France)
in order to achieve an optimal

ioura, combining the restoration mixture of restaurant types

of two twin Levantine houses and sizes, as well as to create
30

with an infill building in a simi- a typical rental agreement for

lar style. the development around
Beirut Marina’s quayside
establishments.

Memorial The nearly complete Mohamad Al Amin
Mosque takes on a much deeper significance for the
Lebanese people when Prime Minister Rafic Hariri is
laid to rest there following his assassination.
05
Middle Eastern City of the Future Beirut wins the
award for Best Human Resources, as one of the fDi
(Financial Times) Middle Eastern Cities of the Future
2005/2006.

Skygate Under the authority of the civil aviation au-
thorities, the Skygate helium balloon carries passen-
gers to a height of 150 and 300 m for a 360-degree
view of the city center and surroundings.
Garden of Forgiveness Designed by Gustafson
Porter, Hadiqat As Samah is one of 23 projects dis-
played at “Groundswell: Constructing the Contempo-
rary Landscape,” an exhibition presented by the
Museum of Modern Art (MOMA), New York.
 Infrastructure Development Landscape

After the handover of street
lighting, sewage, and storm
water networks to the State, the
Municipality takes charge of
their operation and mainte-
nance. However, Solidere still re-
tains control of the tunnels and
the sewage pumping station,
carrying out damage repairs to
street furniture and sending doc-
umentation and claims to the
Municipality.
Twenty-one vacant lots now
provide 3,100 parking spaces,
servicing an average of 10,000
customers per day, and the oper-
ational Beirut Souks under-
ground parking facility
contributes an additional 2,500
spaces. Temporary car parks are
offered on empty lots in the
eastern section of the Waterfront
District with free shuttle service
to the Traditional City Center.
Groupe Camille Rayon (France)
completes the design of the
Beirut Marina equipment: pon-
toons, utilities (water, power,
and telecom), ducting networks,
mooring bollards, and service
bollards. An additional quay pro-
viding boaters with extra com-
fort in the case of strong winds is
ready for use. To avoid the accu-
mulation of odor in the marina,
Groupe Camille Rayon has de-
vised a flushing system to en-
hance the current by injecting
fresh water and air. Finally, an
intelligent system will cover the
functional aspects of the harbor-
master’s building, linking to all
activities to allow for automatic
billing.
Connections are installed for all
utilities: water, electricity, fire
line, telecom/internet, and cable
TV. Medium-voltage power re-
quested from the Electricité du
Liban is distributed throughout
the marina via five transformers,
with a 3,500 KVA generator pro-
viding 100 percent backup
power.
The Conservation Area is al-
most complete with a few devel-
opments still underway. These
include the Bank of Kuwait and
the Arab World designed by ARC
Group in association with
Abdel-Wahed El Wakil (Egypt)
and the Radium office building,
designed by R & K Consultants.
The underground, 2,500-space
Beirut Souks parking lot is fully
operational, and the detailed de-
sign for the Souks Core is com-
plete. After obtaining a building
permit for the whole develop-
ment, the tendering is finalized
and Societe d’Entreprises A. R.
Hourie receives the construction
contract for the South Souks.
In the Serail Corridor, the con-
cept design for a new mixed-use
project is commissioned to Jerde
Partnership (US) with MXD
(Canada) as land use consult-
ants. Located on Patriarch Hoyek
Street facing Beirut Souks, the
project is envisaged as an addi-
tional magnet to the area, offer-
ing pedestrian-accessible retail
and leisure uses on the lower
levels and a selection of restau-
rants, with a boutique hotel and
nightclub on upper floors.
Through the International Union
of Architects, Solidere organizes
the Martyrs’ Square Grand Axis
of Beirut international urban de-
sign ideas competition to solicit
a new vision for this prime pub-
lic space and its surrounding de-
velopment, now open to the sea
in its extention from the Damas-
cus Road gateway to the Beirut
Port’s first basin.
The competition brief requires
candidates to integrate impor-
tant archeological sites to the
north of the square into the de-
sign, including the Ancient Tell
area and the Beirut City History
Museum, for which the French
architect Michel Macary has al-
ready undertaken a preliminary
feasibility study. The competition
incorporates urban design,
transport planning, and land-
scape design components.
At the intersection of the Axis
and Weygand Street (Conserva-
tion Area) a new development is
under construction, aptly named
Bab El Saray after the medieval
city gate that once stood nearby.
The building is designed by Dash
Architects (UK) and Hani Murad.
At the southeastern edge of the Recent landscaping works
Axis, the City Center building include adding trees in Weygand
or Dome, previously planned to and Allenby streets with Foch
house the Ministry of the Inte- Street to follow, upgrading trees
rior as part of a property swap in the Hotel District and in Wadi
with the Company, must be Abou Jamil, and upgrading the
reconceived. Bernard Khoury open space next to Starco’s
is commissioned to restore the northwestern corner.
building and its surrounding
spaces as a temporary center
for the arts and culture, pending
the site’s final development and
land use.
In the Waterfront District,
Solidere enters a joint venture
agreement with Stow Waterfront
Development s.a.l. (Stow) to
develop the area around Beirut
Marina. Beirut Waterfront Devel-
opment s.a.l. (BWD) is incorpo-
rated in April, with 50 percent
shareholding for each of the two
partners: Solidere contributes in
kind 22,351 sq m of land with
about 20,000 sq m of built-up
area, and Stow contributes
US$31.6 million. The design
submitted by Steven Holl (US) is
gradually amended to reflect the
requirements of BWD and Solid-
ere. High-Point Rendel (UK) is
appointed construction manager.

Martyrs’ Square, also known as

! — 33

the Bourj (tower) or Place des

Canons (Cannon Square), has
32

existed at this location for cen-

turies, evolving with the passage
of civilizations, trauma of war,
and impact of city growth and
social change.

Beirut Jazz Festival The first Beirut Jazz Festival,

scheduled over four nights as the musical highlight of
the year, is organized by Solidere in collaboration with
Radio One. Two stages flank the quayside of Beirut
Marina, surrounded by food and beverage kiosks in-
stalled for the occasion.
Beirut City Center Recovery Solidere publishes Beirut
City Center Recovery: The Foch-Allenby and Etoile Conser-
vation Area by Robert Saliba. Saliba’s volume highlights
the importance of the Conservation Area, which epito-
mizes the civic and business identity of Beirut city cen-
ter as both a national capital and a port.
04
 Infrastructure
The design proposal for two
major road improvements re-
ceives approval from the Council
of Reconstruction and Develop-
ment. Their finalization requires
a Master Plan amendment to be
issued in a decree by the Council
of Ministers. The first improve-
ment is a detailed design for the
road junction linking the north-
ern edge of Martyrs’ Square to
Trieste Street while fully integrat-
ing important archeological sites
in the Ancient Tell area. The sec-
ond is a conceptual design aimed
at substantially improving the
George Haddad–Fouad Chehab
junction, implementing grade
separation at the intersection.
Sidewalks in the Traditional City
Center are progressively upgraded
from concrete to durable granite
in all areas where new develop-
ment is complete.
The project to build and operate
teleport/broadband distribution
and cable TV networks receives
support from the International
Telecommunications Vision f ol-
lowing a presentation at the
World Summit on Information
Society in Geneva.
! — 35
34
Beirut International Marathon Lebanon’s capital
hosts the first Beirut International Marathon. Founded
by May El Khalil, the event represents the first major
successful running event in the region, with Solidere
among the event’s official sponsors.
Development
The Embassy Complex has
now reached full occupancy.
Joining the Japanese and the
British embassies are the Aus-
tralian, Norwegian, and Danish
embassies. At the same time, an
agreement is signed with the
Council for Development and
Reconstruction for the entire
floor space of the office building,
while the nine-apartment resi-
dential complex, decorated by
Halim Harmouch, is completely
leased or sold. Designed by FM
Consultants with Dada & Asso-
ciates as internal decorator, the
health club opens under the
operation of Nautilus (US).
At the heart of Saifi Village
evolves the Quartier des Arts.
Designers and art galleries,
antique and artisan shops, and
beauty specialist boutiques are
attracted by a favorable rental
policy and proactive promotional
campaign. They are also drawn to
the backdrop of reconstructed
and restored traditional build-
ings, winding cobblestone streets,
and landscaped courtyards that
all contribute to the ambiance
of an artisanal village. Solidere
inaugurates its own gallery in the
sector, Pièce Unique, to provide a
platform to local Lebanese artists
for solo exhibitions.
The Grand Théâtre undergoes
a technical study to evaluate the
best approach to restoration.
A distinctive feature of the
building is the carving on each
column capital depicting a fruit,
vegetable, or grain native to
Lebanon. The Grand Théâtre is
of historical importance to the
city of Beirut. Originally a small
hotel with retail shops along its
arcaded street-front facade, its
main component was a theatre
that hosted performances and
events. The block is being devel-
oped as an integrated project
that brings together the historic
building and an adjacent build-
ing and vacant lot. Works are
undertaken to strengthen the
structure of the existing build-
ings and carry out repairs to
some of the stone facades.
In the Hotel District, Koetter,
Kim and Associates (US) is com-
missioned to undertake a further
urban design study to allow ad-
ditional height to some towers.
On completion and approval of
a sector plan amendment, de-
sign and building permit proce-
dures are registered for a number
of large projects, among them
four high-rise, luxury develop-
ments overlooking the Beirut
Marina. Residential Platinum
Tower, designed by Nabil Gho-
lam Architects in association
with Ricardo Bofill (Spain),
will add a serene silhouette to
Beirut’s skyline, alongside the
Beirut Tower, designed by Samir
Khairallah & Partners in associa-
tion with Wimberly Allison Tong
& Goo (US), Marina Towers
complex, designed by Kohn
Pedersen Fox Associates (US),
and the Four Seasons Hotel,
designed by Dar Al Handasah
with Pierre Yves Rochon (France)
for interior design. Nearby, still
in the planning stage, is the
Dana of C.C.C., a medium-rise
residential building designed by
Dash Architects (UK) and Al
Salam.
Archeology
A strategic approach is devel-
oped to integrate archeological
finds into the urban fabric and
landscaped spaces. These her-
itage city layers are a significant
cultural asset; their display and
celebration are an important
visitor attraction and an oppor-
tunity to project the uniqueness
of Beirut in comparison with
competing cities in the region.
Scientific journals around the
world publish several articles on
Beirut’s historical trade relations,
written by archeologists from the
fourteen teams that have worked
in Beirut city center. The articles
provide general maps of Beirut’s
urban layout during various pe-
riods of its history, including for-
tifications spanning more than
3,000 years and the major axes
of the Roman City.
Landscape
Gustafson Porter (US/UK) is
commissioned to design the
landscaping of the Hotel District
and Old Shoreline open spaces.
These include a series of inter-
connected pedestrian areas and
gardens along the city’s old
shoreline including the Old
Shoreline Walk: Mina El Hosn
Square, Zeytouneh Square, San-
tiyeh Garden, All Saints Square,
and the Ottoman Wall Walk.
Meanwhile, in-house design
work starts on the Heritage
Trail pedestrian circuit, which
links archeological sites, historic
public spaces, and heritage
buildings over a 3.5 km walking
trail that encircles Beirut’s his-
toric core. Information panels
are in preparation, together with
a tourist map of archeological
sites and historic buildings.
03
 Corporate Infrastructure Development Archeology

Extending its services to other
property owners, Solidere signs
several agreements to market
third-party properties prior to
undertaking their full-time
operation and maintenance
management.
! — 37
36
As designs and development
controls for the public domain
are generated, plaques with
newly assigned postal codes are
mounted on building facades.
Solidere creates a signage man-
ual and submits it to Beirut Mu-
nicipality.
Among the underground park-
ing facilities planned for the Wa-
terfront District is a garage
beneath the Corniche Road near
Beirut Marina. An agreement is
signed with Dar Al Handasah for
its design, to coordinate with the
marina and its surrounding de-
velopment. The 400-space park-
ing is subject to a 50-year
operation agreement with the
State, according to which Solid-
ere may build and operate the
parking facility and retain a
share of the revenue.
Following the Japanese Em-
bassy, the British Embassy
moves into its new quarters in
the Embassy Complex. More
stringent security arrangements
are imposed following the Sep-
tember 11, 2001 events, causing
delays in the completion dates
for the remaining space, for
which other embassies have
signed letters of intent.
The two other buildings previ-
ously planned as administrative
office buildings in the Conser-
vation Area are redesigned by
Fouad Menem Consultants as a
multiuse complex comprising an
office building, three residential
buildings, and a health club.
A decision is taken to first
develop the southern part of
Beirut Souks – the Souks Core
and the Jewelry Souk – on its
own, without recourse to
investors. This should allow
Solidere to maintain control
of commercial areas and their
management and secure good
rental revenues.
A highly positive response to
Saifi Village provides the impetus
to further invest in residential
developments and reinforce
urban integration. Solidere com-
missions the design and imple-
mentation of clusters of various
sizes for land plots in Wadi
Abou Jamil, involving both
restoration and infill.
The architects are carefully
selected for design approaches
that are particularly responsive
to local context, culture, and cli-
mate. The international firms
include Porphyrios Associates
(UK), Giancarlo De Carlo (Italy),
Dar Al Omran–Rassem Badran
(Jordan), Abdel-Wahed El Wakil
(Egypt), and Oktay Nayman
(Turkey). Maha Nasrallah, a local
architect, wins the design com-
petition for one of the lots.
In Saifi, Nabil Gholam Architects
is commissioned to design two
new extension projects to Saifi
Village. The land for one of the
projects, lot 146, is sold with its
design concept. The other, 178
Saifi, remains in Solidere’s port-
folio and is planned as five new
buildings organized around an
internal courtyard and a restored,
three-story building from the
1940s.
Third-party interest in these
“special residential sectors” rises.
Developers set in motion several
new projects in Wadi Abou Jamil,
for example an exclusive resi-
dential development designed
by Ziad Akl, combining modern
luxury and traditional architec-
ture. An adjacent boutique hotel
groups together a new infill
building with restored and
reconstructed buildings. In Saifi,
new projects include Al Mashrek
Insurance Company, designed
by Nabil Azar, and Safi Village
Two, designed by Nabil Gholam
Architects.
Prime Minister Rafic Hariri
launches the construction of a
grand mosque at the intersection
of Martyrs’ Square Axis and
Amir Bachir Street. Inspired by
the Blue Mosque in Istanbul, the
Mohamad Al Amin Mosque is
designed by Azmi Fakhuri with
decorative painting and orna-
mentation (gilding, calligraphy,
patina, stone, and wood imita-
tion) by the artist Harout Basta-
jian.
The higher council for Urban
Planning and Beirut Municipal-
ity approves the Waterfront
District’s detailed sector plan.
However, the issuance of a
Council of Ministers’ decree to
officially ratify the sector plan is
a precondition for initiating the
detailed infrastructure and land-
scaping design in the district.
Following the launch of a limited Core drilling in a Foch-Allenby
design competition for the site reveals the location of the
development around Beirut ancient harbor. The developers
Marina as a premier waterfront decide to incorporate a land-
destination, an agreement is scaped area into the develop-
signed with Steven Holl Archi- ment to feature the reconstituted
tects, a leading American firm. remains under the name Harbor
The architect’s concept involves Square.
a town quay with waterside
restaurants on the curved south-
eastern boardwalk of Beirut
Marina; a yacht club, summer
apartments, and leisure and ma-
rina-related shopping facilities
on the eastern edge of the ma-
rina; and a harbormaster, cus-
toms, and immigration building.

Charter Award The Skidmore Owings & Merrill

(US) Waterfront District sector plan wins a Charter
Award from the Congress for the New Urbanism.

Van Alen Institute in New York An exhibition ti-

tled “Renewing, Rebuilding, Remembering” features
seven cities, including Beirut, that have been rebuilt
in the wake of disasters. The section on Beirut features
the city center’s master plan, the concept design by
Gustafson Porter for the Garden of Forgiveness, and
Nadim Karam’s Archaic Procession sculptures.

Solidere online A new website for the Company,

developed for the company by Invivia Inc (US), is
online with fully animated features.
02
 Infrastructure Development Landscape

Control of the power substation
is transferred to its ultimate op-
erator, Electricité du Liban. The
water supply and disposal net-
works; the Ring Road with its
bridges, tunnels, and under-
passes; the primary and second-
ary roads; and the utilities in the
Traditional City Center are deliv-
ered to the Council for Develop-
ment and Reconstruction (CDR).
Solidere continues to operate
and maintain the infrastructure
pending Beirut Municipality ten-
dering out the provision of oper-
ation and maintenance services.
! — 39
38
The number of temporary park-
ing facilities increases to provide
3,000 spaces servicing about
6,000 customers per day. Solid-
ere pursues its requests to the
CDR and the Municipality to
proceed with the two parking
lots underneath public property
(Riad El Solh and Martyrs’
Square), which the CDR has al-
ready tendered out as build-op-
erate-transfer projects.
On the private side, Beirut Souks’
parking garage is partially open,
providing 750 parking spaces in
its fourth basement. The four-
level, 108-space underground
public parking lot on Weygand
Street is now open as well.
The peaceful residential ambi-
ence in Saifi Village derives
from a quiet environment and
carefully designed and land-
scaped public realm. Brick
paving and fountains, seasonal
shrubs and flowers, wooden
benches, and children’s play-
grounds provide the narrow
tree-lined streets, public squares,
and gardens with an appealing
communal character. The success
of the development is apparent
as it is completely sold or leased.
Among other new developments
in the Serail Corridor are 24
Avenue du Parc and Park View,
two low-rise residential develop-
ments that offer ground-level,
high-end retail, prominently
located at the border to the new
Waterfront District.
In the Martyrs’ Square Axis,
the first Virgin Megastore in the
Middle East opens in a restored
heritage building, the former
Opera House, adjacent to an-
other building under restoration,
which will house the Union
Franco Arabe d’Assurances et
de Réassurances (UFA) regional
headquarters.
Skidmore Owings & Merrill
(US) finalizes detailed plans
for sectors A and D of the Wa-
terfront District, adapted to
Formula One safety and other
requirements. They receive pre-
liminary technical approval from
the FIA. The sectors plan accom-
modating the listed requirements
includes a 4.8 km track that runs
clockwise and starts at the coastal
Corniche. The total area of land
for development in the district
remains unchanged.
In the Waterfront District, leisure,
sporting, and tourist activities are
dominant in Sector A, while Sec-
tor D, planned as an exemplary
modern development, is a mixed-
use area with a wide range of
commercial and retail services;
office, tourist and hotel space;
convention centers; exhibition
and cultural facilities; and exten-
sive residential development.
Green open spaces are multiply-
ing across the city center. An
area above the Weygand street
underground parking lot now
boasts a large water fountain
and a variety of greenery, includ-
ing vines, olive trees, and palm
trees, providing a visual link to
the Municipality building and the
restored Al Omari and Amir Assaf
mosques. Another 2,000 sq m
public space opens near the
Grand Serail entrance. Triangular
in shape with an elevation range
of about 10 m, its landscape de-
sign incorporates five dominant
stone terraces that help retain
the soil. An S-shaped, dark green
lawn covers about half of the
space, the rest dotted with low-
growing flowering shrubs such
as yellow day lilies, rosemary,
lavender verbenas, and purple
and red salvias.
Across the street, near the Na-
tional Evangelical Church, a new
garden opens featuring a curvi-
linear path and stone benches.
Hundred-year-old olive trees,
along with cypress and palm
trees, dominate the upper canopy
while star jasmine, pink roses,
and blue lilies of the Nile cover
the ground. A 15 m wall of ran-
dom natural stone separates
the garden from the restored
National Music Conservatory.
Embedded fossils dating back to
the cretaceous period blend in
to the rustic wall as if they had
always been part of it. At the
southeast corner of the city cen-
ter, in Saifi Village, residential
clusters and internal courtyards
adorn a main square designed
by Iliya Stevenson Consultants,
meshing together into a pleasant
living environment.

Best Practices to Improve the Living Environ-

ment The landfill treatment project in the Waterfront
District receives Beirut Municipality’s nomination for
the Dubai International Award for Best Practices to
Improve the Living Environment, established by the
Second United Nations Conference on Human Settle-
ments (Habitat II).
Fête de la Musique Collaborating with the French
Embassy and the Ministry of Culture, Fête de la
Musique is launched on the summer solstice. Span-
ning a number of locations across the city center, the
festival brings together professional and amateur, local
and international musicians for a long evening of per-
formances.
BIEL The eastern part of the new Waterfront District
that does not require land treatment is leveled and
equipped with temporary roads and two surface park-
ing facilities. The land is leased to Beirut International
Exhibition and Leisure Center (BIEL) to host activities
in temporary structures, including a 15,000 sq m cen-
tral exhibition hall and a 600 sq m exhibition room
with a restaurant and a conference room.
01

Oussama Kabbani
on Planning the Urban
Regeneration of Beirut
City Center
Oussama Kabbani holds a Master's in Urban Design
degree from the Graduate School of Design at
Harvard University, USA. He is currently a mem-
ber of the Board of Directors of Solidere and the
Chairman and partner of Millennium Develop-
ment International Holdings. Previously he held
numerous positions in the development and plan-
ning fields most notably as Executive Director of
Saraya Development Group, head of the Town
Planning and Urban Management Division of
Solidere, and Senior Planner with the Boston
Redevelopment Authority.
! — 41
40
Twenty years ago, while still in Boston, you were invited to a
conference about the reconstruction of Beirut in Oxford, England.
The war in Lebanon had come to an end, and the city center was
in ruins. How and why did you return to Lebanon, your country of
provenance, and end up at the helm of the urban planning effort?
In 1992, many intellectuals – urban planners, sociologists, and so on
– were looking at alternative ways to reconstruct Beirut’s city center.
Two main groups emerged: one was a group led by the new Prime
Minister Rafic Hariri, preparing a master plan for reconstruction with
Dar Al Handasah, and the other was made up of the likes of econo-
mist and historian Georges Corm, architect Assem Salam, and sociol-
ogist Nabil Beyhum.
I was invited to the conference in Oxford by the second
group, who then invited me to another conference in Beirut, where this
time I was asked to make a presentation about the master plan for the
city center being prepared by Dar Al Handasah. I accepted on the con-
dition that I would merely comment on the technical aspects of the
plan. Following my presentation, in which I pointed out technical
problems with the plan, I was approached by the would-be founders
of Solidere to join their team in their effort to regenerate the Beirut city
center. The opportunity was so vast that many were compelled to join,
especially those who wanted to do something on a historical scale.
After 16 years of war, Beirut city center was a mess. I was
young, I had studied urban planning, and my city was destroyed. I
had an aspiration to do something about it. I was going to do what I
had prepared myself to do.
How did your memories of the city center influence your perspec-
tive on the reconstruction effort?
I was born and raised in Beirut, but my relationship with the city cen-
ter is not the same as that of someone born in the 1950s or earlier.
My generation, the 1960s generation, had just started to get to know
the city center when the war started; we were around 12 years old.
We had not experienced the city center as the older generations had.
Our relationship with the memory of the place is different. The ques-
tion of memory is fundamental in an undertaking such as the recon-
struction of the city center.
The older generations, who had a more emotional rela-
tionship to the place, considered us harsh in our outlook. We be-
lieved the city center needed more than plastic surgery; it required
major surgery to be resuscitated. We realized that times had
changed and that we had to let go of certain nostalgic emotions. The
nature of youth is to have a margin of maneuverability between the
old and the new without sacrificing the integrity of either. We had
the ability to move forward, to make what others considered harsh
decisions, yet we maintained the relationship with the memory of
the place without being hostage to it. We were also the link between
the older generations and the younger ones, who had no memory of
the place at all.
When you started working on this project, what models and his-
torical precedents did you consider?
There was no real prototype. Of course, postwar reconstruction of
European cities after World War II is well documented. Most Euro-
pean cities had been rebuilt exactly as they were, but some were
completely demolished and rebuilt from scratch. In our research, we
studied all modern cities around the world because, disregarding cul-
tural differences, they share certain values. Most practitioners in the
urban planning field agree that it is the fundamentals that make a
good city, wherever it is located in the world. For example, a city that
you can walk in is a good city. A city that has certain continuity in its
layers of memory is a good city. A city with fundamentals in color,
texture, views, and public spaces is a good city. And so on. But you
cannot apply all the fundamentals of one city onto another as there
are some that are contextual.
Given that the capital had been scourged by civil war and that
the society was severely fragmented, what then did you see as the
“fundamentals” of the Beirut city center reconstruction plan?
I had the passion to help rebuild the city, but the passion was strength-
ened by the leadership, because there was a“Vision,”with a capital V.
There was a destroyed country and a destroyed capital city center and
no resources whatsoever. It wasn’t a matter of rehabilitating utilities
and roads. All governmental institutions needed rehabilitation. The city
center in particular was important because of its social context. At the
heart of the city, it was an amalgamation of the different communities
that made up the Lebanese people. The end result, the completely re-
constructed and developed city center, is still our objective in the long
run. But the pieces of the puzzle take time to integrate.
In developing a plan for reconstruction, it is the fundamen-
tals that matter, not the actual physical plan. The fundamentals were
simple. One, whatever was deemed of historical value was to be pre-
served, for instance the sector known as the Conservation Area
today. Two, with the upcoming land reclamation for the new Water-
front District, the Traditional City Center had to be linked to the sea.
Three, the plan had to include as much public open space as possi-
ble. Four, the city center had to be a pedestrian-friendly area. Five, it
had to have an identity. Six, public transportation had to be im-
proved. Seven, mass densities had to be concentrated together to
maintain a certain character across the area.
Planning begins at the city level. The fundamentals are the
DNA of a new city. Architecture, the physical aspect, is developed at
a later stage, and it tends to change with time as trends change.
Are you suggesting that the fundamentals of a city remain rela-
tively constant but that architecture, the physical manifestation
of so-called “urban DNA,” varies with time? Why is architectural
form not a so-called fundamental in and of itself?
Because planning, over time, gets liberated from the past. At the be-
ginning, we are somewhat apologetic, yet sensitive, really sensitive,
to the past, our history. Over time, as trends and lifestyle demands
change, we are liberated and the vision takes on new wings. Yet, the
fundamentals will never change. That is why the small square in Saifi
will never disappear. The square near Starco will never disappear.
These are the fundamentals of the Beirut Central District Master
Plan: the streets, views, corridors. They will always be a part of the
city center. They will always be a part of the city center; they have
become cast in stone.
Before you joined Solidere, you gave a presentation at two con-
ferences in Beirut and Oxford in which you noted technical prob-
lems with the master plan under preparation at the time. What
were those problems, and were you able to implement any
changes?
Firstly, the initial master plan incorporated a sunken highway around
the city center, like the Paris Périphérique, a beltway around the city
but below ground level. It would have turned the city center into an
independent entity. It was agreed that the city center had to be a con-
tinuation of its surroundings, and the sunken highway was removed.
Secondly, the reclaimed land area on the waterfront was
planned as an island. From an urban design point of view, it was bril-
liant. It would have provided more waterfront areas. However, from a
social point of view, it undermined the cohesiveness of the social fabric.
Thirdly, the master plan conceived an icon for the city cen-
ter in the form of twin towers. They were planned on the Waterfront
and were quite tall. Beirut did not need such iconography. In away,
the voices of the likes of Corm, Salam, and Beyhum were heard
through these two conferences, and some of their criticisms were
taken into account. These are fundamentals that were removed, and I
believe the master plan became more humane without them.
How did you sequence real estate development after the major in-
frastructure works were completed in the city center? What were
the priorities, and how were these priorities determined?
The sequence of real estate development indeed had to do with the
historical spirit of the city center. One of the master plan’s funda-
mental features was to preserve the memory of the city to the extent
possible. Beirut Souks and the Conservation Area as a whole were
therefore a priority. In the Conservation Area, our main task was the
restoration of the preserved heritage buildings, to turn them into of-
fices with modern amenities, at least on the interior. The exterior was
to be faithfully restored. We had no experience in the matter, so we
had to seek advice from different authorities on the subject, such as
the Museum of London. We learned on the job and realized that
those who had the most experience with preservation were Syrian
masons, who were really artists and understood stone.
Beirut Souks were important as the heart of trade. Bring
commerce back to the city center, and you bring back life. But the
Old Souks were completely destroyed, and we decided to run an
open international competition. Out of 350 or so entries, the jury
shortlisted three schemes. Unable to take a consensual decision, to
address decisively the difficult moral and intellectual question of how
to rebuild a place of such memory, it left the final decision up to
Solidere, the custodian of Beirut city center.
Another priority was to develop residential nodes, the first
of which were to be Saifi and then Wadi Abou Jamil. All these com-
ponents would bring life back to the city center as it would then ex-
pand to other areas. This is in a way what happened. After we began
restoration, third-party developers came along and wanted to create
projects in other sectors. We allowed them great leeway in where and
what they wanted to develop as long as they followed the prescribed
technical guidelines.
Demographics in Beirut have shifted over the decades, and there
is a growing young population looking for apartments they can
afford. Can the city center accommodate this type of demand?
Beirut city center’s real estate properties, like in most downtown
urban areas in the world, are the most expensive in the city. They
tend to be exclusive, accommodating only the people who can afford
them. This is the nature of any open market. So, the city center can-
not solve the problem, which is a national issue. Furthermore, the
company has investors, shareholders, who it answers to and to
whom it promises returns on their investment. What it does give to
the community are quality and well designed public spaces that will
last forever. These will culminate in the coming years with the water-
front city park, the largest park in the city.
If you look at the greater scheme, you realize that Solidere
has raised construction standards in Lebanon, introduced a cultural
dimension to Beirut with restoration and the planned archeological
gardens and museums, and garnered international recognition for
urbanism and design “made in Lebanon.”
Looking back in retrospect on 18 years of development and recon-
struction, if you had had the benefit of impeccable foresight, what
would you as an urban planner have done differently?
I look back, and I don’t see any major disasters in terms of develop-
ment progress and architecture. The only thing I regret is not having
somehow been able to introduce a subway transit system, not only to
the city center but to the city as a whole. It would not have made
sense to have one on such a small scale as the city center, and we
could not find a partner at the national level to support the idea.
Beirut is growing vertically and is suffocating and con-
gested at the street level. Public transportation on the existing road
network cannot solve the problem. The city needs a subway system:
there is no other alternative.
 Corporate
Solidere’s development strat-
egy focuses on real estate proj-
ects that elicit end users’ interest
either as a place of residence or
as a headquarters for their activi-
ties. At this time, the Company
decides to delay the implemen-
tation of new projects in favor
of pursuing existing ones, pend-
ing an improvement of market
conditions.
Site logistics services are pro-
vided, including cleaning, safety,
security, the operation and
maintenance of electromechan-
ical systems, traffic management,
and temporary surface parking
while the permanent parking
facilities remain under construc-
tion. Management and operation
services are also available to
infrastructure, marinas, public
utilities, parking facilities, and
landscaped open areas even
after these spaces have been
handed over to the authorities.
! — 43
42
Peace-building Seminar Solidere attends the semi-
nar in Cartagena, Colombia, which was organized by
the US Embassy. The conference presented private
sector initiatives in Central and South America as well
as in other parts of the world.
Infrastructure
With approval from the Council
for Development and Recon-
struction, hardscaping, street
furniture, and landscaping are
being upgraded beyond the
scope of the agreement with the
State, adding further value to
city center properties. The policy
of building high-standard
streetscapes and public space
is amply rewarded. The quality
of the pedestrianized public
realm and the integrated street
furniture design in Beirut’s his-
toric core are tangible and
widely recognized assets of sub-
stantial value.
Ten temporary surface parking
facilities on vacant lots provide
1,600 spaces servicing about
3,000 city center customers
per day. Meanwhile, the public
administration decides to delay
the Martyrs’ Square parking lot,
citing several considerations.
Solidere files a claim for com-
pensation due to the ensuing
major delays in the Martyrs’
Square Axis sector development.
Expo2000 Hannover Medal A gold medal is
awarded for a model role in urban reconstruction.
Civil works for a secondary
telecommunication network
in the Foch-Allenby, Nejmeh-
Maarad, and Saifi areas are im-
plemented. The network design
is under way for Wadi Abou
Jamil, Ghalghoul, the Serail
Corridor, and the Hotel District,
and its realization will soon fol-
low, street after street.
Bouygues (France) completes
and delivers the Beirut city cen-
ter marine works: Beirut Marina
along with a breakwater and a
two-line defense structure pro-
tecting the marina and the new
Waterfront District. Beirut Ma-
rina is able to berth boats (though
not at full capacity), and, under its
1997 agreement with the State,
Solidere operates the facilities.
Development
Originally designed by Youssef
Aftimos in Egyptian-influenced,
neo-Mamluk style, the Beirut
Municipality landmark building
in the Foch-Allenby area has
been restored by Walid Takied-
dine. The bustle of official busi-
ness fills its offices once again.
Other completed restorations
and new developments in the
Conservation Area also convey
the importance of Beirut city
center as a hub of business
activity.
The development previously
planned as an administrative
office building for government
institutions in the Conservation
Area on Serail Hill has been
redesigned by IdepConsult–
Mounir Saroufim and executed
by Samir Mokbel and Partners as
the Embassy Complex. Initially
delivered as empty shells, the
development now includes
electromechanical and other
specifications geared to suit the
requirements of the embassies
that will occupy it. The Japanese
Embassy is the first to move in to
its new, leased premises within
the complex. Negotiations con-
tinue with three other embassies
that have shown interest and/or
signed letters of intent.
Marketing launches for the resi-
dential development now called
Saifi Village. The apartments
elicit serious interest, and grad-
ual deliveries begin.
Meanwhile, the development of
a small residential cluster in the
Zokak El Blatt area of Wadi
Abou Jamil reaches completion,
a serene collection of low-rise
1960s buildings adjacent to a
large communal garden with
club facilities. The apartments
are all leased.
The first third-party complexes
to be restored in the Ghalghoul
sector are the landmark Lazarieh
Center on Amir Bachir Street
and the Markazia building, now
the Monroe Suites Hotel. They
join the area’s most recent de-
velopment, the UN House.
The Fédération Internationale
d’Automobile (FIA) approaches
Solidere with a proposal to build
a Formula One race track in
Beirut city center. The Formula
One track would utilize the
coastal Corniche Road bordering
the new Waterfront District, in
addition to several internal
streets in that district and the
northern corner of the Tradi-
tional City Center. Meetings
are held to explore this possibil-
ity, and the FIA requests some
amendments to the road net-
work to meet Formula One
technical specifications.
The Council of Ministers in-
structs the Council for Develop-
ment and Reconstruction to
commission a study and accord-
ingly propose an amendment to
the Waterfront District sectors
plan. A decree will be issued by
the Council of Ministers to this
extent, based on a study to be
submitted by Dar Al Handasah.
The physical implementation of
the changes depends on whether
the FIA approves the amendment
and commits itself to organizing
the event.
Archeology Landscape
The documentation, digitization, Rudy Rahme’s bust of the writer
and evaluation of the archeolog- and poet turns the landscaped
ical finds near their completion. area across from the UN House
These sites include a corner and into the Gibran Khalil Gibran
tower of the Hellenistic City, the Garden. Around the Roman
Roman Baths, a number of pub- Baths, the northern terraced
lic and religious buildings and garden is complemented by
monuments, and the Cardo the newly complete southern
Maximus. Following the exten- garden.
sive findings related to the latter,
the development rights on a Meanwhile, the tree nursery
2.3 ha site between Nejmeh is producing 25,000 flowering
Square and Martyrs’ Square plants per month. An increasing
are relinquished to create the number of streets are lined with
Hadiqat As-Samah (Garden trees, fitted with planters, or
of Forgiveness), located between reorganized to accommodate
several places of worship. wide medians covered in trees,
shrubs, and colorful annual
The British-American landscape plantings.
architects Gustafson Porter
(US/UK) win the international
landscape design competition
for the garden. British archeolo-
gists Henry Hurst and Steve
Roskams provide a consultancy
report to the Directorate General
of Antiquities in order to find an
appropriate approach to inte-
grate the archeological remains.
A conservation plan includes the
long-term burial of exposed
archeology at the northern end
of the site, along with on-site
conservation and integration of
features from different periods.
These include the Roman Cardo
Maximus and its rediscovered
junction with the Decumanus
Maximus; earlier Hellenistic
remains; Roman houses and
workshops; evidence of overlap-
ping Hellenistic, Roman, and
Phoenician urban grids; walls
associated with the 17th-century
Fakhreddine palace; and later
Ottoman foundation arches
and walls.
00
 Corporate
The flexibility of Solidere’s
marketing policy is reflected in
a healthy mix of sales and rental
operations, geared toward meet-
ing existing demand at any given
time. Both strategies aim not
only to generate revenue but
also to infuse dynamism into
the city center. To that end, and
in light of a general economic
slowdown that has had a nega-
tive impact on sales operations,
the Company decides to focus
on pursuing major works and
projects that ensure occupancy.
Monitoring the progress of its
own as well as third-party
restoration projects, Solidere
coordinates with Beirut Munici-
pality to implement a quin-
quennial regulation requiring
buildings to be maintained on
a regular basis through general
cleaning and facade mainte-
nance every five years.
! — 45
44
Planet Discovery In collaboration with the French
Cité des Sciences et de l’Industrie de la Villette, the
Planet Discovery children’s science museum opens.
It offers hands-on learning and edutainment opportu-
nities to youth in an innovative, dynamic space.
While temporarily located adjacent to Starco Center,
the museum will later become a permanent feature
in Beirut Souks.
Infrastructure
Sidewalks are laid across the city
center as developments come to
completion. Foch-Allenby fea-
tures sidewalks of granite tile,
while sidewalks in the rest of the
city center are made of concrete
tile. All are specifically tailored to
meet everyone’s needs, including
the disabled. Throughout the city
center, sidewalks are fitted with
tree grates featuring decorative
motifs.
Street furniture designs sub-
mitted by Wilmotte & Associés
(France) for the areas beyond
Foch-Allenby gain approval.
Additionally, the Dutch joint
venture Reklaspits/BRS Premsela
Vonk delivers a way-finding sys-
tem for cars and pedestrians, as
well as location maps.
The second phase of land
treatment begins, involving
the excavation, sorting, process-
ing, and treatment of five million
cubic meters of construction
debris and domestic solid waste.
Radian International (US), a
member of the Dames & Moore
Group, is awarded the contract;
Fairhurst International (UK)
takes on the role of construction
manager with Bureau Veritas
(France) as controller.
With the completion of most civil
works for the Beirut Marina on
the St. George Bay, including the
quays and breakwater, Beirut Ma-
rina basin is now clearly demar-
cated. Following a development
strategy study, the US companies
Hallmuth, Obata and Kassabaum
(HOK), EDAW, and Sasaki are
invited to bid for the marina de-
sign. The contract is awarded to
Sasaki in a joint venture with the
Lebanese firm Idea. The design
involves mooring pontoons, a
clubhouse, and a public quay to
accommodate a diversity of
shopping and food kiosks, along
with several other components.
Nejmeh Square The pedestrianized Nejmeh Square
with its restored clock tower and radial cobblestone
streets gradually fills with cafes and restaurants and is
beginning to attract crowds to the city center in search
of outdoor spaces for family outings.
Restoration
Restoration work is taking shape.
Behind elaborately restored ex-
ternal facades, the buildings’
interiors are completely modern.
In residential neighborhoods,
restoration goes hand in hand
with great sensitivity to the
Mediterranean typology. In of-
fice environments, all restored
buildings are fitted with high-
tech equipment for functionality,
comfort, and efficiency, and
open floor plans allow for opti-
mal, flexible use of the area. The
final product is quality space
with a special sense of character.
The rejuvenation process has
shaped public awareness of her-
itage buildings while creating a
demand for restored space.
Development
Following the design phase and
after construction begins on the
developments near Serail Hill to
house agencies affiliated with
the Prime Minister’s office in the
Conservation Area, the Council
of Ministers decides to cancel its
agreement with the Company.
The project comes to a halt, and
ensuing claims from the contrac-
tors are settled while Solidere
seeks compensation from the
government for damages and
losses.
Options are studied to modify
the use of the developments. The
building to the west of the Serail
is marketed to foreign embassies.
After prospective occupants sign
letters of intent, the internal
layout is altered to reflect their
requests. The other two build-
ings take different paths: having
completed civil works on one as
an office building, Solidere looks
for interested parties; the third, it
adapts into a residential building.
After the Ministry of Finance an-
nounces its intention to cancel its
lease, works are placed on hold
on the two buildings pre-leased
to the ministries of finance and
the interior within the afore-
mentioned agreement with the
State. A settlement is reached
with the contractor.
The construction of the Saifi
residential development’s
parking facility is completed, and
its electromechanical equipment
is installed. The internal parti-
tioning of the apartments fol-
lows an interior design by
Michel and Halim Harmouch.
The buildings will be equipped
with modern amenities and pro-
fessionally managed to reflect
international service standards,
including security and fire safety
networks, accesses for the dis-
abled, garbage collection, and
central air conditioning for each
unit. In Wadi Abou Jamil, the
established Besançon and Ahlieh
schools have been rehabilitated.
After standing alone for so long
in the Hotel District, the Starco
Center, restored by Addor & Jul-
liard (Switzerland), is now wit-
nessing the construction of
several surrounding residential
and hotel buildings. Major hotel
chains such as The Four Seasons,
Ramada, and Hilton are estab-
lishing a presence here, increas-
ing the international profile of
the district. Residential and
tourist developments are in-
creasingly drawn to the quality
of the Beirut city center, evident
in the completion of infrastruc-
ture and public space.
Right below Serail Hill at the be-
ginning of the Serail Corridor
leading straight to the sea, a
major private-sector develop-
ment reaches completion: Bank
Audi’s new headquarters and
branch offices.
Archeology Landscape
Designed by Dash Architects Excavations of the Cardo Sculptures by Salwa Rawda
(UK), the project includes three Maximus (Roman thoroughfare) Choucair now adorn the garden
contemporary buildings con- continue, along with prepara- across from the UN House, and
nected by a top-lit planted tions to expand the site east- sculpted modular benches are
atrium together with a restored ward. Additional excavations installed in the adjoining Amir
historic building adjoined by a covering other portions of the Amin Square. The cascading
public garden court. Roman-Byzantine city begin, green open space under the
following approval by the Direc- Serail preserves the collective
The Waterfront District is a torate General of Antiquities and urban memory of the area by
privileged site with panoramic the Maronite Church Council as planting new cypress trees,
views of the Mediterranean and the custodian of the St. George weeping willows, conifers, and
a picturesque landscape of hills Orthodox Cathedral near Nejmeh erythrina alongside old ficus
and mountains across the bay. Square. trees and a wall built in the
The proposal for its seaward face 1950s to frame an ancient frieze
will introduce an uninterrupted, discovered on the site. At its own
2.2 km extension of the Beirut expense, Solidere maintains the
shoreline. Planned as a prime trees and landscaped open
district, the new land will ac- spaces and operates and main-
commodate modern financial, tains the irrigation station and
business, and residential facilities. network until their transfer to
It will also include two marinas, the relevant public authorities.
a waterside park, a seaside drive
and promenade, and cultural,
tourist, and entertainment facili-
ties. The district will offer unpar-
alleled investment opportunities.
The waterfront development
densities are higher than those
in the Traditional City Center,
with envelope controls ensuring
a carefully planned distribution
of floor space and the clustering
of high-rise development. The
majority of development on park
and sea frontages is of medium
density, limited to 40 m in height.
Frontages on the Mount Sannine
view corridor reach 52 m in
height. In total, 16 high-rise sites
have been planned at distinct
locations. Streetwall controls are
applied to main street and
boulevard frontages, and man-
dated view corridors are created
to preserve sea and mountain
views.
99
 Corporate Infrastructure Development

With the delivery of the UN
House, along with restored
buildings through sales and re-
cuperation, attention is turned
toward ensuring the occupation
and proper property manage-
ment. All Beirut city center
property owners are entitled to
first-class facility management
services consisting of competi-
tive sales and rental support,
high-quality technical mainte-
nance services, cleaning, safety,
security, and lease management.
To that effect, negotiations are
conducted with potential cus-
tomers, all of whom express
interest in expanding an already
successful business relationship.
! — 47
Marking a major milestone in its
contract with the State, Solidere
completes infrastructure works –
power and water supply,
sewage and rainwater drainage,
and roads – throughout the
Traditional City Center as well
as in part of the original landfill
area. Apart from the Ring Road
and the George Haddad Street
underpass, large avenues now
cut east–west and north–south.
Park Avenue (Francois Al Haj
Street) constitutes an important
axis linking Wadi Abou Jamil to
the reclaimed land. Weygand,
Zeitouneh, and Port streets have
been widened and now extend
toward Trieste Street by the port.
They form major boulevards
cutting east–west across the city
center, leading to the Souks, the
Conservation Area, and the Mar-
tyrs’ Square Axis. In order to fa-
cilitate access from the Ring Road,
streets are widened in Ghalghoul
and the northern part of Wadi
Abou Jamil, where new roads
have been added.
The water supply system is also
delivered, comprising 30 km
for drinking water and 38 km
for landscaping and irrigation,
including a concrete water tank
built under the Ring Road bridge.
This goes hand in hand with a
water disposal system, consisting
of 26 km of stormwater drainage
and 28 km of sewage pipes.
Public lighting with low-voltage
cables and fixtures is complete,
together with feeder pillars in the
streets, a transformer substation
with standby generators, and
closed-circuit TV in the tunnels.
The selection of street furniture
designs in the Traditional City
Center is based on the character
of each sector. A contract is
awarded to the French company
Générale d’Hydraulique et de
Mécanique for cast-iron orna-
mental street lights in the Con-
servation Area. The moulds are
cast from the original designs
prepared for Beirut in the 1920s.
In other parts of the city center,
the option goes to modern street
lighting designed by Wilmotte
(France) and manufactured by
Hess (Germany) and Eclatec
(France). Traffic lights and road
signs, the latter based on a study
by Dutch consultants Reklaspits/
BRS Premsela Vonk, are installed
Solidere is granted a build-and-
operate license for a broadband,
fiber-optic network destined to
ensure high-speed transmission
of audio, image, data, and video,
including a cable TV network.
This multimedia platform en-
ables any building in Beirut city
center to connect directly to high-
capacity broadband services.
In marine works, construction
of the sea defense structure
makes h eadway. With “accrop-
odes” (man-made concrete
blocks) gradually cast on-site
and placed among rocks along
the western breakwater, more
than 70 percent of the breakwa-
ter is finished. The completion
of the landfill dredging works
makes way for the construction
of the first defense line, the sub-
merged reef.
Works for the second defense
structure require a massive
assembly line. A prefabrication
yard is built on-site for the pro-
duction of the caissons, working
in parallel to the installation of
the concrete reinforcement. A
launching platform is installed
to slide the caissons into the sea.
The caissons are thus cast suc-
cessively on land and then low-
ered via the launching platform
While the sea defense structure
is essential to the development
of the reclaimed area, the above-
water component consists of
three levels of promenades,
extending over 1.5 km between
the Hotel District and the Beirut
Port. It provides a natural exten-
sion to the existing Beirut Cor-
niche and encourages public
recreation and leisure activities.
Upon completion of the Beirut
Marina town quays, Corniche
promenade, Eastern Marina
quayside, and Beirut Port’s first
basin promenade, the city center
will provide an uninterrupted,
3.5 km extension to the Beirut
shoreline, more than four times
the area of public seafront space
currently available on the entire
Beirut peninsula.
The recovery of the Conserva-
tion Area enhances its four
original character areas, each
presenting a unique sense of
place. With its largely pedestri-
anized streets, the area is recog-
nized as a substantial feat of
heritage restoration on a global
scale. Restored buildings line the
streets with beautiful facades
while also complying to interna-
tional safety standards and fea-
turing modern amenities. The
relocation of all Solidere offices
to seven of the buildings in the
Foch-Allenby area heralds the
return of activity to this sector.
Riad El Solh Street comes back
to life with six major banks oper-
ating again and others under
restoration. With seven of the
religious buildings restored and
drawing an increasing number
of worshippers, the city center is
reaffirming its role as a meeting
place for all Lebanese people.
The Grand Serail, originally built
in the mid 19th century as an
army barrack atop a hill during
the Ottoman period, and the
Council for Development and
Reconstruction, previously an
army hospital, are restored to
their original grandeur. As the
Council of Ministers relocates to
the Grand Serail, works advance
The design-and-build tender for
the Beirut Trade Center leads
to negotiations with the most
competitive contractor, the joint
venture Binladin/Al Mabani, to
reduce construction costs and
completion time. Construction
manager Turner/Steiner (US)
teams up with the joint venture,
contributing its expertise in high-
rise buildings. Meanwhile, the
legal and financial structure for
the project is under development,
and a shareholding company is
formed. The project is then placed
on hold for a number of reasons
including the withdrawal of an-
chor tenants.
In the Hotel District, the finished
10,000 sq m Army Officers’
Club building, designed by
Samir Khairallah & Partners,
opens as the Monroe Hotel.
Martyrs’ Square Axis, ravaged
by the effects of the war and its
aftermath, is planned as a
mixed-use sector with the highly
symbolic civic space at its heart,
now open to the sea. It aims to
reconnect and reactivate the city
center and enhance and inten-
sify the city’s link to the water-
front. In the blocks forming the
immediate eastern edge of Mar-
tyrs’ Square, the plan envisions a
A planning study is underway
for the new Waterfront District,
which includes the reclaimed
land and the extension of the
Corniche along the northern
edge of Beirut city center (Sec-
tors A and D). The study is
awarded to American firms
Skidmore Owings & Merrill
for urban design, Sasaki for
landscaping, and Parsons
Brinckerhoff for traffic. Destined
to evolve into a detailed sector
plan, the study aims to ensure
the acquisition of target devel-
opment rights on the new land
through proper urban design. It
will provide a conceptual design
as well as design and landscap-
ing guidelines for the new seg-
ment of the Corniche, completing
its connection to the planned
marinas at both ends.

to float on the water. Once towed on the three Serail Hill adminis- continuous colonnade facing the
within the city center, as well as to position, they are lowered to trative office buildings. Several square. Its objective is to create
46

directional signage along the
peripheral roads.
The Council for Development
and Reconstruction awards the
construction of the Martyrs’
Square parking lot to Al-Kharafi
& Sons on a build-operate-
transfer basis. The contract for
the Serail Hill parking lot has not
yet been awarded. Meanwhile,
construction begins on the Foch-
Allenby and the Weygand Street
parking lots.
the sea floor in a controlled hospitality initiatives in the sector a strong urban statement as a
manner and filled with sand. are transforming Beirut city cen- 21st-century expression of the
Once the western breakwater is ter into a nighttime destination. 1920s Maarad Street colonnade,
complete, the construction of the the signature feature of Beirut’s
Beirut Marina and its mooring In response to increasing market historic core.
quays progresses rapidly. interest, further sector planning is
carried out for Wadi Abou Jamil
with consultant Nabil Gholam
Architects. For the sloping, Lev-
antine part of town below Serail
Hill, the plan is to develop a res-
idential neighborhood with a
mix of preserved and new town-
houses, low-rise apartment
buildings, schools, community-
related shops, and open spaces.
Height controls are imposed on

98
new developments to preserve
view corridors.
 Archeology
Throughout the city center,
archeology plays a key role in
highlighting the area’s value and
creating a cultural destination.
The Canaanite Tell and the
Roman Cardo Maximus, re-
tained in situ, will form part of
the public open space design
that includes the Beirut City
History Museum and the Her-
itage Trail linking archeological
and historical sites.
! — 49
48
UN House Inauguration United Nations Secretary-
General Kofi Annan inaugurates the UN House. The
Secretary-General describes the building as“setting an
example for other United Nations offices around the
world.”
Michel Macary (France) is com-
missioned to undertake a design
feasibility study initially for a Tell
site museum. Since the present-
day city center encompasses the
whole of urbanized Beirut from
ancient times to the 1830s, the
project evolves into a “City His-
tory Museum” that can accom-
modate finds not only from the
Canaanite Tell but also from sites
throughout the downtown area.
The museum will also be a key
site within the Beirut Heritage
Trail, now in the research and
design phase by an in-house
team, planned to link archeolog-
ical sites and heritage buildings
on a 3.5 km walking tour within
the historic core.
Landscape
The first open space in the
Conservation Area is completed
around the restored archeological
site of the Roman Baths, land-
scaped by InterScene (France)
and Maurice Bonfils to feature
two gardens, a cascading foun-
tain, and a small amphitheater
designed to host musical con-
certs. To recreate the sights and
scents of an ancient Roman gar-
den, the architects have planted
Mediterranean trees and installed
large clay pots filled with medic-
inal aromatic herbs used in
Roman times, including oregano,
basil, and thyme, and fragrant
flowers such as violet, jasmine,
and lavender. The northern part
of the garden is open to the
public, as is Riad El Solh Square,
now landscaped and housing
the restored statue of its name-
sake, the first prime minister of
independent Lebanon.
Other projects are set into mo-
tion this year, among them a
6,000 sq m garden facing the
UN House, marking the central
gateway into the downtown,
designed by Mohamad Halawi.
The garden features two circular
spaces, a water fountain sur-
rounded by trees, and a viewing
platform. The same landscape
architect has also designed Omar
Daouk Square and a cascading
garden below the Grand Serail.
Meanwhile, close to 1,500 trees
are planted around different
parts of the city center, ranging
from the traditional olive, pine,
and palm trees to revived local
species such as magnolias and
bougainvilleas, chosen for their
efflorescence in the spring and
summer.
To further enhance public space
and instill culture in the city cen-
ter, discussions are ongoing with
the Ministry of Culture to com-
mission sculptors to create pieces
to adorn public areas. The Com-
pany provides space and logis-
tics for the artwork and, in some
cases, takes on a portion of the
sponsorship.
98
 Corporate Infrastructure Restoration Development

The General Assembly approves
a stock split to facilitate trading
operations and to align the value
of the share to national and in-
ternational trading standards.
The par value becomes US$10
after each old share is divided
into ten new shares. The Council
of Ministers approves the Solid-
ere stock split.
Solidere’s capital decreases from
US$1.8 billion to US$1.65 billion
through the retirement of 17 mil-
lion A shares that reverted to
Company possession after some
original Beirut city center rights
holders decided to recuperate
their properties. At the same
time, an amendment to Article 9
of the Articles of Incorporation
provides international investors
with the right to own shares,
which was previously restricted
to Lebanese and Arab nationals.
50 — 51
In the sale and rental of its
property, the Company targets
three main categories of cus-
tomers: local and foreign corpo-
rate, individual, and institutional
clients. It sells “as is” some of the
retained built lots whose owner-
ship devolved to it; others it re-
stores and sells, keeps for office
use, or rents out. Previous prop-
erty owners and tenants are
attracted back to the city center,
including both Lebanese expa-
triates and foreign companies.
The Council for Development
and Reconstruction (CDR) ten-
ders out as build-operate-trans-
fer projects the Martyrs’ Square
and Serail Hill underground
parking lots, located under gov-
ernment and municipal prop-
erty. Meanwhile, the parking lot
near Riad El Solh Square awaits
the conclusion of on-site arche-
ological excavations.
Other projects are under way to
meet the demand for parking
spaces by occupants of the re-
stored properties. One is a joint
undertaking of common works
for a 280-space parking lot in
the Foch-Allenby area, initiated
in conjunction with owners of
other lots nearby; another facility
is in development on Weygand
Street.
One of the most important road
works in the city center, the ex-
pansion of the Fouad Chehab
Avenue Bridge, opens to traffic
nine months ahead of schedule.
The 3.6 km Ring Road, as it is
called, connects to the western
end of Fakhreddine Street by
tunnel and links through a
longer tunnel to the Corniche
Road near the Phoenicia Hotel.
After awarding the contract for
power supply to the consortium
of the Matelec-Melec and GE-
Hitachi, construction of a power
substation is initiated to feed
electricity in the city center. In
the meantime, a temporary 20
MW substation provides power
to buildings and operations cur-
rently functioning in the area. To
link the Beirut city center with
the national transmission net-
work, a 5.5 km 66 KV cable is
installed through a major culvert
running from Port Street, north-
east of the city center, to
Fakhreddine Street to the south-
west, while a 4.5 km 220 KV
cable connecting the substation
to the main Electricité du Liban
grid in Horch Substation remains
under construction.
Meanwhile, the landfill alters
the shape of the shoreline and
the topography of Beirut city
center. Heavy engineering works
are actively under way: sea de-
fense structures to seal and pro-
tect the district’s outer limits as
well as processes to deliver clean
development sites. Once cleared
and protected, the reclaimed
land should offer unparalleled
development opportunities,
planned to accommodate a
modern financial and business
Concerning marine works,
Maunsell (UK) is replaced by the
British company Rendel, Palmer
& Tritton as engineering consult-
ant, while the CDR retains So-
cotec as technical controller.
Christiani & Nielsen–COWI
(UK/Denmark) continues to
serve as construction manager.
Following positive detailed hy-
draulic model tests on the ma-
rine works design model,
conducted at Delft Hydraulics
in the Netherlands, mobilization
of the plant and manpower on
the site begins.
An agreement with the State
provides the rights to administer
the planned Beirut (Western)
Marina water surface and the
Corniche underground parking
lot outlined in the Beirut Central
District Master Plan for a 50-
year period. At its own expense
and with official approval, Solid-
ere will construct the installa-
tions needed for the marina
operation that fall within the
State’s private domain. The
works include access and circu-
lation, breakwater surface park-
ing, an underground parking lot,
marina boardwalk and pontoons,
a harbormaster’s building, and
all essential boat utilities.
In the most innovative restora-
tion concepts, preserved build-
ings are combined with new
construction, often incorporating
an inner landscaped courtyard
as communal open space. These
solutions strive to maintain the
accurate restoration of preserved
buildings to their original designs
while providing modern, infill
development controlled by design
guidelines that respond sensi-
tively to the historic context.
Damaged by the war, the Mar-
tyrs’ Square Monument under-
goes restoration at the University
of the Holy Ghost in Kaslik
under the supervision of Dr.
Issam Khairallah, director of the
Restoration Center. British expert
Rupert Harris joins the project
as a consultant. The repair works
include restructuring the statue’s
support base, welding its parts,
treating rust and corrosion, and
restoring its original color. Al-
though the statue is reinforced
to prevent further deterioration,
bullet holes are retained as a re-
minder of the damage inflicted
by war. The monument is the
work of Italian sculptor Marino
Mascarati, first unveiled on Mar-
tyrs’ Day, May 6, 1960.
An agreement is concluded with
the government, approved by
the Council of Ministers, which
includes a land swap, the financ-
ing of the Grand Serail, and the
provision of 70,000 sq m of office
space to affiliate agencies of the
Council of Ministers, Ministry
of Finance, and Ministry of the
Interior in the Conservation
Area. The deal stipulates the
delivery of two buildings on the
lower part of Serail Hill on France
Street for use by the CDR, the
Investment Development Au-
thority of Lebanon (IDAL), and
the Central Administration for
Statistics. Both are designed by
Fouad Menem Consultants based
on a concept by IdepConsult–
Mounir Saroufim. A third build-
ing, west of the Serail on Army
Street, also designed by Idep-
Consult, will house several other
governmental agencies. All of
these buildings are at different
stages of preparation works.
Conceptual designs are approved
for some of the office space for
the Ministry of Finance, Ministry
of the Interior, and other gov-
ernment agencies. Construction
begins in accordance with a new
contract providing timetables
and broad building specifica-
tions. The Ministry of Finance
Designed by Malek Mahmassani
Architectural Practice, the com-
plex includes a new office build-
ing and integrates the surviving
adjacent “Dome” structure, to be
restored as a 550-seat confer-
ence center. A bit further west,
Conceptua (France) and Syrcon-
sult provide a concept design for
the Ministry of the Interior.
Following an initial master plan
prepared by Jad Tabet in collabo-
ration with Benjamin Thompson
Architects (US), it is decided that
the Beirut Souks project will be
designed through five separate
commissions to Lebanese and
international architects. The
146,000 sq m floor space will be
interspersed with 60,000 sq m
of landscaped pedestrian areas.
Following the ancient, pre-
Roman street grid and integrat-
ing archeological features and
gardens, Beirut Souks consecrate
the historic value of the place
while relying on the state-of-
the-art technology of modern
commercial centers.
The team includes Rafael Moneo
(Spain) with Samir Khairallah
& Partners for the southern part’s
Souks Core, Dash Architects
(UK) with Rafic El Khoury and
Partners for the southern part’s

district, retail and commercial
services, tourist and hotel space,
and an extensive residential
area, enhanced by an 8 ha public
park, 7.5 ha of waterside terraces
and public promenades, and
recreational facilities.
Marina by-laws must be estab- project involves the reconstruc- Jewelry Souk and the office block,
lished and receive official ap- tion of the former City Center Valode and Pistre (France) with
proval in order to address issues building southwest of Martyrs’ Annabel Karim Kassar for the
such as administration and oper- Square into administrative of- northern part’s Cinema and
ation of the marina general serv- fices (part of a property swap Entertainment complex, and
ices, boat traffic, public safety, with the government). Nabil Tabbarah for the Depart-
environmental protection, and ment Store. Olivier Vidal (France)
vehicular and pedestrian circula- is responsible for designing the
tion. Groupe Camille Rayon Souks’ public spaces. Dimitri
(France) is appointed consultant Alatzas Asociados (Spain) carries
for the Beirut Marina, and con- out the sub-basement parking
struction of the Eastern Marina design and management systems.
facing the first basin of the Beirut
Port is deferred to a later phase.

Information Center The Information Center moves

with the Company offices to Building 149 in the Foch-
Allenby area. It continues to welcome visitors inter-
ested in examining the Beirut city center model and
the sea defense system designed to withstand centen-
nial storms, currently under construction on the
seafront of the reclaimed area.
Beirut Reborn Award Published by Academy Edi-
tions/John Wiley & Sons, Beirut Reborn wins the inter-
nationally prestigious Donside Design and Print Gold
Award. The authors embark on a European and North
American lecture tour, which, combined with the publi-
cation’s global distribution, establishes worldwide
recognition for the Solidere project as a model of high-
quality urban development and inner-city regeneration.
Global Best Practises As one of the 100 projects
acknowledged as Global Best Practices, the Beirut city
center reconstruction and development project was
included in the United Nations Habitat II conference
in Istanbul in 1995. As a result of this exposure, a UN-
commissioned film highlighting the project is broad-
cast worldwide in six languages.
97
 Landscape

The detailed design for the entire
project is complete. It takes into
account the needs of identified
users as well as the results of
marketing studies on the Souks’
retail and entertainment poten-
tial. Approval is obtained from
the Directorate General of Urban
Planning. Following shoring and
excavation works in the south
parking lot, an agreement is fi-
nalized with the Arabian Con-
struction Company, and works
get underway.
The findings of a marketing sur-
vey to assess housing demand
and identify requirements help
finalize the preliminary designs
of the Saifi residential devel-
opment. Excavation and shoring
works are complete, and after a
successful launch of the tender
during the summer, the building
contract is awarded to Société
Mouawad-Eddé.
! — 53
After a record fast-track con-
struction period of 14 months,
the handover of the UN House
reaffirms the goal of delivering
made-to-measure new construc-
tion. The complex reflects mod-
ern technical specifications.
Designed as a rectangle with a
landscaped open atrium, the
building represents a “gateway”
into the city center.
Following a tender involving five
regional and international con-
tractors for the Beirut Trade
Center, negotiations are ongo-
ing to optimize construction
technology and completion time.
At the same time, surrounding
land is identified to be integrated
into the project, and subdivision,
regrouping, and building permit
files receive approval from the
relevant authorities.
Koetter, Kim and Associates (US)
is commissioned to conduct
urban design studies, and City
Formation International (Canada)
is hired as advisor for develop-
ment to study and prepare de-
tailed sector plans for the Hotel
District and Serail Corridor.
The Serail Corridor will comprise
two rows of towers, stepping
down in height from the water-
front southward and built around
Recognizing the importance The tree nursery welcomes the
of the sectors in the extension first new trees of various species,
of Beirut city center toward the selected for their Mediterranean
new seafront, the study lays out origin and historical association
the principal planning objective with Beirut. Trees that have
of providing mixed-use develop- never grown in the city center
ment of primarily residential, before are tested for adaptability
office, hotel, and commercial to the environment.
buildings with special emphasis
on retail use on the ground floor.
The study also focuses on the
relationship of parcels and their
development to surrounding
streets and public spaces, the
formation of open spaces, and
the general identity of develop-
ment within the sectors.
The first area to be developed in
the Serail Corridor is adjacent to
Beirut Souks, with projects such
as the restored Sabbagha and
Fotiades building by Joseph
Ingea and Ahli Bank by Simone
Kosremelli, as well as new con-
struction such as the Semiramis
mixed-use development by
Adam Architecture (UK), Fouad
Hanna, and Fadlallah Dagher
and the Medgulf building by
Nachaat Owaida.

a shared green linear park.

52

Archaic Procession Solidere backs Lebanese artist

Nadim Karam’s Archaic Procession, an ambitious
urban art installation of metal statues. The proces-
sion’s movement across Beirut symbolizes the cycle
of destruction and renewal: 20 monumental figures
of man and beast advance across the city to the
Mediterranean waterfront. The figures stand on demo-
lition debris, dance along streets, and pass through
residential districts. The exhibition slogan, according
to the artist, is “Believe in beauty and the future,” em-
bodying the spirit of Beirut in the face of the many
tribulations it has overcome throughout history.
97
 Corporate Infrastructure Restoration Development Archeology

Solidere shares begin trading
on the Beirut Stock Exchange.
The number of shares listed to-
tals 100,000,000 in Class A and
65,000,000 in Class B.
A Global Depositary Receipts
(GDRs) offering is initiated to
broaden the investor base by
allowing non-Lebanese entities
to buy into the Company stocks.
The GDRs, issued against A
Shares, were purchased by inter-
national investors, principally in
the United States and the United
Kingdom. Merrill Lynch Interna-
tional is the lead manager of the
offering. The bank syndicate in-
volved in underwriting the deal
includes Robert Fleming & Co.
Limited, ING Barings, Banque
Paribas Capital Markets, and
UBS Limited. The funds raised
are used to finance part of the
infrastructure and real estate
development program during
the initial phase of operations.
Following extensive land surveys
and earthquake vulnerability as-
sessments, strict development
guidelines regarding seismic
safety measures are formulated.
54 — 55
These include earthquake-proof
foundations for all new buildings
and bridges and, when feasible,
for restored buildings.
At the early stages of reconstruc-
tion, property management
had been initiated to cover the
management, leasing, and serv-
icing of the properties owned by
the Company. An effective prop-
erty management program is
now consolidated to better de-
fine aspects of the rental policy,
including technical maintenance
procedures. This has immediate
relevance for the developments
about to reach completion, be-
ginning with the UN House, the
future headquarters for UN
agencies in Lebanon.
Plans are in the works to offer
property management services
to the owners of recuperated
buildings while they undergo
restoration. The Company is ne-
gotiating co-ownership regula-
tions on recuperated properties
where it is one of the rights
holders.
The recuperation process al-
lowing former property rights
holders to reacquire their real
estate comes to a close. A total
of 146 lots are recuperated, and
As priority is placed on the
delivery of infrastructure in the
historic core and its surround-
ings, all utility works comprised
of water supply, storm water,
and sewage networks are com-
pleted in the Conservation Area,
Saifi, Ghalghoul, and Wadi Abou
Jamil. Works are also underway
in other parts of the city, where a
temporary water supply network
facilitates reconstruction efforts.
In road works, the underpass
below George Haddad Street
leading to Port Street reaches
completion, as does the Riad El
Solh underpass leading to Selim
Salam Boulevard and connecting
Beirut city center to the capital’s
international airport.
Beyond the scope of Solidere’s
agreement with the State to in-
stall communication infrastruc-
ture, a decision is taken to provide
value-added services. A strategic
study is commissioned from
Coopers and Lybrand (US) to
determine the special infrastruc-
ture services necessary to meet
and accommodate future demand
in the city center. These include a
fiber-optic network for broad-
band telecommunications serv-
ices used to promote and
facilitate high-speed data trans-
The contract for marine works,
the sea defense structure and the
Western Marina, is awarded on a
design-and-build basis to the
French company Bouygues in
joint venture with its subsidiary,
Bouygues Offshore. The design
offers a simplified engineering
solution to that of Sogreah, which
appears in the master plan with
its offshore, submerged caissons
and narrow lagoon. The Bouygues
scheme extends the reclamation
out to the caisson line, thereby
providing additional public space
to the new Waterfront District.
The sea defense structure will
consist of an underwater plat-
form (submerged reef) as a first
defense, approximately 100–140
m wide with an upper surface at
about 6 m below sea level. The
structure will break the waves
and absorb part of their energy.
The second line of defense con-
sists of a curved line of 80 cais-
sons prefabricated on shore and
each weighing about 2,000 tons.
These will be floated to their
final positions before being
submerged and stabilized with
sand. The width of each caisson
(approximately 22 m) as well as
perforations on its seaward face
will further help to dissipate
wave energy.
Among 40 buildings designated
as architecturally significant in the
Riad El Solh and Foch-Allenby
areas, well-known landmarks
such as the Capitole, Arab Bank,
and Lazarieh Center have started
to regain their former distinction
as the restoration of their facades
nears completion.
In the Conservation Area, a
large number of the buildings
designated as architecturally
significant are under restoration.
Other new, third-party develop-
ments begin to take shape, such
as the An Nahar building at the
intersection with Martyrs’ Square,
designed by Pierre El Khoury
Architects, and the Atrium across
from Al Omari Mosque, designed
by Nabil Azar.
Several major public institutions
including the Council of Minis-
ters and the Beirut Municipality
announce their planned reloca-
tion to the city center, which,
added to the presence of Parlia-
ment, deputies’ offices, and the
Council for Development and
Reconstruction, reestablishes
and consecrates Beirut city cen-
ter as the administrative center
of Lebanon.
The planned Saifi residential
development comprises 16
buildings distributed into four
clusters. The buildings have a
maximum of seven floors, and
the apartments vary in size to
achieve the most efficient use of
space. The development includes
commercial space at street level
and underground facilities pro-
viding 420 parking spaces as
In Ghalghoul, construction is
advancing rapidly on the major
office development near Riad El
Solh Square. The complex, now
named UN House, will house
several regional and local UN
agencies, in particular the Eco-
nomic and Social Commission
for Western Asia (ESCWA),
whose relocation to Beirut is
scheduled for next year. The
16-story development has a total
floor space of 43,000 sq m. Nine
floors above ground comprise
offices, a library, and language
labs, with a lobby and retail serv-
ices at ground level. Conceived
by Pierre El Khoury Architects,
the structure makes use of natu-
ral light and shade. It is an “in-
telligent building” with advanced
technology including a comput-
erized building management
system that controls lighting,
elevators, air handling units, and
data cabling for voice and audio-
visual relay.
Meanwhile, plans are in progress
for the rehabilitation of the Murr
Tower as the Beirut Trade Cen-
ter, and various preparatory
studies for the project are under-
way, including the completion of
preliminary and detailed designs
that take into account new mar-
ket research on office demand.
Archeological finds and treasures
in Beirut city center suggest that
Beirut became a significant urban
center in the third millennium
BC; since then, it has been home
to a large number of civilizations.
As excavations in the Souks un-
cover a city wall and moat and a
Phoenico-Persian quarter, work
around Martyrs’ Square reveals
Hellenistic and Roman remains.
The latter are found within the
preserved foundation arches of
the Petit Serail. Photogrammetry
and numbering are used to ac-
curately record and concisely
archive discoveries recommended
for dismantling and subsequent
reassembly. All findings are reg-
istered to enable future studies
and to reconstruct historical
continuity for the public.
Based on master plan objectives
and the archeological conclusions
reached by the Directorate Gen-
eral of Antiquities in accordance
with UNESCO protocols, sev-
eral major discoveries will be re-
tained in situ and integrated into
the design of public open space,
including the Roman Cardo
Maximus and adjacent discover-
ies, the Phoenician wall encir-
cling the Canaanite Tell, and the
nearby remains of Beirut’s Cru-

1,180 tenants apply to return to
these buildings. Most of the re-
cuperating parties obtain per-
mits to restore their properties.
In addition, 114 buildings de-
volve to Solidere’s ownership
when their rights holders elect
not to recover them, opting in-
stead to receive Class A shares.
mission of text, image, audio, well as storage units for the Negotiations are proceeding to sader castle. These sites will form
and video. apartments. prelease the center in prepara- part of an archeological Heritage
tion for construction. Trail to attract both local and for-
The first phase of land treatment The detailed design reinterprets eign visitors. Other vestiges, such
in the reclaimed area includes traditional architectural features. as the ancient mosaics, coins, and
several major works. While waste Colorful facades with triple pottery fragments, are removed
extraction and its subsequent arches, decorative cornices and and will be displayed at the Na-
bio-composting progress, land balconies, red-tiled pitched roofs, tional Museum and other suit-
reclamation continues with courtyards, paths, and walkways able places.
backfilling into the sea on the stay faithful to the character of
northeast side of the landfill. Saifi and add to the charm of the
This requires approximately two neighborhood. Bouygues (France)
million cubic meters of debris, and Soltravo oversee the execu-
recycled through a process that tion of site preparation works
clears the concrete rubble of steel and construction of permanent
and iron and crushes it before use. diaphragm walls.

Cadastral Maps A final survey of all plots in the Tra-

ditional City Center, approved by the cadastral author-
ities, is the first to convert hand-drawn cadastral maps
into a fully digital format to facilitate land registration,
subdivision, and property transfer.
Beirut Reborn Angus Gavin and Ramez Maluf cele-
brate the publication of their book Beirut Reborn about
the renewal of Beirut’s city center. The book analyzes
the Beirut Central District Master Plan and the early
progress of city center restoration and reconstruction.
Hamidieh Clock Tower Standing tall in the gardens
of the Grand Serail after being rehabilitated and fitted
with new mechanical parts, the Hamidieh Clock Tower
is the first historical monument to be fully restored in
Beirut city center. The clock tower was named after
Sultan Abdul Hamid II, the 19th-century Ottoman
emperor, and was originally inaugurated during cere-
monies marking the 21st anniversary of his reign.
96
Infrastructure 1995 Priority is placed on the delivery
of infrastructure in the historic core and its surroundings.
 Corporate
The Company establishes an in-
ternal organizational structure,
with each division staffed by a
professional team of experts. The
changes aim to maximize effi-
ciency and goal fulfillment
through coordination and coop-
eration among the various units.
The strategy pursued in land
sales, as in all other activities,
stems from basic principles of
the master plan and the Com-
pany’s stated policy and targets.
Within this framework, Solidere
retains enough flexibility in its
strategic planning to allow for
adjustment and revision accord-
ing to market developments and
other changes.
58 — 59
Temporary Activities With the addition of a Ra-
madan tent and Christmas fair, activities continue
on Martyrs’ Square, attracting an increasing number
of visitors.
Sales comprising a variety of land
uses have started one year earlier
than planned in response to the
strong demand for Beirut city
center property, reflecting the
public’s confidence in the entire
project. These sales ensure a
quick revitalization of the Tradi-
tional City Center. The policy is
to offer buyers the possibility
of deferring part of the payment
of the sale price, thus enabling
them to better plan their invest-
ment financing.
In addition, the Company plans
to lease space it owns in reno-
vated or new properties to create
a rental market. Along with space
available in recuperated proper-
ties and new third-party projects,
the rental market is fueled by the
unique infrastructural advantages
that will be available in the city
center, as well as the opportunity
it affords to first-time, short-term,
and/or small-scale users for
maximum flexibility in selecting
places of residence or business.
To protect properties and the
public realm, a series of codes
and regulations for safety and
security in Beirut city center is
authored and implemented in
conjunction with public authori-
ties and other official agencies.
Manuals detailing site security
and safety procedures are pre-
pared. These include a fire code
in collaboration with the Direc-
torate General of Urban Planning,
the Council for Development
and Reconstruction (CDR), and
Libnor (The Lebanese Standards
Institution); a manual concerning
facilities for the disabled, co-
authored by the Economic and
Social Commission for Western
Asia (ESCWA); and a standard
developer’s kit as general refer-
ence for sales, construction, de-
sign, development, and other
related tasks.
Surface Parking Lots Pending the construction of
the underground public parking lots mandated in the
master plan, temporary surface parking is provided on
vacant lots throughout the city center.
Infrastructure
As an example of transforming
disaster into opportunity, the
new Waterfront District is an
expansion of an original landfill
enclosing the Normandy dump-
site that has environmentally
scarred the city center foreshore
since the Lebanese war. The
Beirut Central District Master
Plan envisions the district cover-
ing more than 60 ha of reclaimed
land with spectacular views of
the sea and mountains. In fulfill-
ing its agreement with the State,
Solidere commissions Dames &
Moore (US) to conduct a study
and a geotechnical investigation
of the landfill. Based on its rec-
ommendations and specifications
for landfill treatment, Dames &
Moore is retained as supervising
engineer.
Three of the eight shortlisted
international contractors submit
bids for marine works involving
the design and construction of
seafront protection and the con-
struction of two marinas. Follow-
ing close evaluation and further
negotiations, the British com-
pany Maunsell Consultancy is
appointed as engineering con-
sultant, Sogreah (France) as proj-
ect advisor, the British-Danish
joint venture Christiani &
Nielsen–COWI as construction
manager, and Winston & Strawn
(Switzerland) as legal advisor.
Restoration
Solidere undertakes building
damage assessment surveys,
development program prepara-
tions, and conceptual design
studies of the structures to be
preserved in accordance with the
master plan. As part of the strat-
egy to revitalize Beirut’s historic
core, restoration and rehabilita-
tion works begin on several of
the buildings that have not yet
been recuperated in the Foch-
Allenby area. As the recupera-
tion process nears completion,
Restoration Briefs are issued to
recuperating parties, paving the
way for renovation works to
begin on a major scale.
Monitoring of the restoration
process takes place regularly to
avoid any delays in the work’s
progress. The projects advance
through successive phases of pre-
liminary design approval, restora-
tion permit issuance, mobilization
of site works, facade sample ap-
proval, site inspections, design
adjustments, and, finally, occu-
pancy permit procedures. Build-
ing facades determined fit for
restoration to their original state
are preserved by using surviving
elements (old stone, wood, and
iron) and augmenting them
wherever needed with new
elements shaped to blend in
seamlessly. The result is authen-
tic restoration based on high-
quality craftsmanship, especially
in stonemasonry.
Development
The Conservation Area con-
sists of four character precincts
and is planned as the political,
financial, and cultural heart of
the city. The Foch-Allenby dis-
trict presents a rich variety of ar-
chitectural expressions such as
French Mandate, Venetian- and
Genovese-inspired triple arch
windows, Ottoman arcades and
cornices, and Islamic friezes and
inscriptions. Lebanese architects
of the 1920s and 1930s also cre-
ated buildings in a variety of
neo-Oriental styles to express a
regional identity in contrast to
the classical architecture of the
French Mandate.
The Maarad-Nejmeh district,
site of the Parliament and several
key religious structures, revolves
around a central axis, Maarad
Street, a colonnaded boulevard
in the French Mandate style.
Serail Hill, overlooking the city
center, houses the Ottoman-
period Prime Minister’s offices
and the CDR, originally an
Ottoman military hospital. Riad
El Solh Street, in contrast, is
home to preserved early modern
buildings that have served as
headquarters for financial and
government institutions since
the mid 20th century.
In Beirut Souks, architect Jad
Tabet is commissioned as lead
master planner for the Tawile,
Ayass, and Al Jamil Souks, to
work in collaboration with Ben-
jamin Thompson, an American
firm of architects and planners
with recognized skills in retail
and urban marketplace projects
in the United States and around
the world. Samir Khairallah &
Partners take charge of the struc-
tural and mechanical aspects of
the project. The Paris office of
Larry Smith (US) acts as the
Souks’ first economic consultant.
Meanwhile, a detailed design is
prepared and excavation works
begin for the parking structure
below the souks.
An urban village in Saifi is in
planning with French architect
François Spoerry and the archi-
tectural engineering firm Erga
Group. The project comprises 16
separate infill projects in similar
scale to the existing preserved
buildings that date from the 1880s
to the 1950s. Each is designed as
a unique, individual building in
the vernacular tradition of the
late 19th century. Located at the
southeastern corner of the city
center, the Saifi residential
project falls within the objective
to restore and maintain continu-
ous life and activity in Beirut city
center. By providing 150 apart-
ments for rent and sale, the proj-
ect contributes to the creation of
a new rental market.
For the city center gateway sec-
tor of Ghalghoul and Murr
Tower, Koetter, Kim and Associ-
ates (US) and City Formation
International (Canada) are com-
missioned to prepare a detailed
master plan. The sector is con-
ceived as high-density, mixed-
use area to include south and
southwest gateway towers that
mark two of the city center’s key
entry points.
The conceptual design for the
former Murr Tower by the
Canadian Webb Zerafa Menkes
Housden Partnership transforms
the tower into the Beirut Trade
Center. Technical and financial
feasibility studies are carried out
to complete the design, which
includes architectural, electro-
mechanical, and structural plans.
Socotec becomes technical con-
troller.
Construction launches on a
19,900 sq m major new office
development near Riad El Solh
Square comprising offices, large
conference facilities, and support
services equipped with state-of-
the-art building technologies,
communication facilities, and
audiovisual systems.
Planned to preserve an unob-
structed view from the Grand
Serail plaza over the city center,
the waterfront city park, and the
Mediterranean Sea, the Serail
Corridor will be a mixed-use
sector of medium density that
bridges the city’s Conservation
Area and the Hotel District. The
latter is planned as a high-den-
sity sector.
The second new construction
project, the Army Officers’ Club,
is part of a swap agreement with
the Lebanese Ministry of De-
fense. The Company undertakes
the design and construction at
its own expense, and the min-
istry relinquishes its rights to
another lot in the Hotel District
with a structure formerly used as
the Army Officers’ Club. The
ministry will then acquire the
developed property in accor-
dance with specifications de-
fined at the time.
95
 Corporate Infrastructure Restoration

The Lebanese Company for the
Development and Reconstruc-
tion of Beirut Central District
s.a.l. (La Societé Libanaise pour
le Development et la Recon-
struction du centre ville de Bey-
routh, or Solidere) is created for
the purpose of reconstructing
the Beirut Central District (Beirut
city center) in accordance with
Law 117 of 1991. The Company
comprises a shareholder major-
ity of former owners and tenants
in city center property, as well as
some new shareholders. All for-
mer stakeholders are required by
government decree to relinquish
their property rights in exchange
for shares in the company.
By virtue of Law 117/1991, the
Company capital will consist of
real estate properties in Beirut
city center and the rights therein
(contributions in kind), as well
as cash subscriptions. The Com-
pany’s duration is set at 25 years
starting from the date of incor-
poration.
60 — 61
Solidere is incorporated on May
5 with capital in the amount of
US$1,820,001,290, following a
statutory general meeting of
shareholders. The assembled
body ratifies the Articles of In-
corporation and all pre-forma-
tion actions undertaken by the
Board of Founders, including the
share issue and pre-formation
expenses. It then elects the first
Board of Directors for a three-
year period and appoints Com-
pany auditors.
The Company’s share capital
consists of the following cate-
gories:
“A” shares: Contributions in kind
to the Company capital are val-
ued at US$1,170,001,290. A
maximum of 11,700,012 Class A
shares valued at US$100 each
will be issued at par to the prop-
erty rights holders against their
contributions in kind following
the appraisal and distribution
resolution by the Appraisal
Committee, appointed by the
Ministry of Justice. The Class A
shares are issued upon receipt of
the final distribution decisions
by the Distribution Committees
for the relevant property lots.
“B” shares: Following an offering
Solidere’s activities are manifold.
They include acquiring real estate
properties and rights within
Beirut city center, financing and
executing infrastructure works
on behalf of and at the expense
of the State, developing and re-
constructing Beirut city center by
restoring existing structures and
building new ones in accordance
with the approved master plan,
and selling, leasing, utilizing,
managing, and maintaining these
properties. Furthermore, the
Company will work to reclaim
land from the sea according to
its agreement with the State; this
entails land preparation, financing,
and infrastructure development
on the reclaimed land, and in
consideration thereof, being al-
located a share in the reclaimed
area in the form of private land
for development, the construction
of buildings there, and the sale,
leasing, usage, management, and
maintenance of these properties.
In reconstructing and developing
Beirut city center, the develop-
ment strategy is to start by fo-
cusing on the historic core or
Conservation Area, then move to
the mixed-use Hotel District and
residential Saifi to test the mar-
ket. While the Company plans to
develop some of the project floor
area itself, it hopes to achieve a
balanced mix of projects by other
developers for the remaining
space. As supervisory body and
lead developer, it plans to con-
trol the pace, components, and
quality of each development from
inception to completion. In that
regard, it initiates Development
Briefs for new projects, providing
standardized documentation of
technical guidelines for the de-
velopment and calculation of
floor space for each parcel in
Beirut city center.
An agreement is signed with the
Council for Development and
Reconstruction (CDR) to finance
and execute infrastructure works
in Beirut city center in accordance
with the approved Master Plan,
ratified by the Council of Minis-
ters. The infrastructure works in-
clude a vast array of construction
projects: primary and secondary
roads; bridges and tunnels; a
seaside boulevard; public squares
and gardens; water distribution,
sewage, and rainwater disposal
networks; a power substation and
high-voltage line to the Horch
Substation; civil engineering
works for electricity and tele-
communications networks; road
lighting and traffic signals; land-
fill treatment and backfilling on
the reclaimed area; marine
works and two new marinas;
and urban and street furniture.
The agreement stipulates that
Solidere will undertake the
works above on behalf and on
account of the State; in return,
the Company is granted owner-
ship of 291,800 sq m of re-
claimed land.
In a joint venture with the
Italian Consorzio Cooperative
Costruzioni, the Lebanese con-
tracting firm Klat and Maouad
receives the contract to execute
Regulations prepared for the city
center require developers to in-
corporate parking spaces into
building plots and provide ade-
quate parking to serve the uses
of each project. The standards
assume the gradual introduction
of effective public transportation
within the city. In addition to
these designated parking facili-
ties, the master plan envisages
three major underground public
parking lots in the Traditional
City Center, under Martyrs’
Square and Riad El Solh Square
and near the Grand Serail, with
more to come in the reclaimed
land area.
Within the reconstruction and
development of the Beirut city
center, marine works include
the design and construction of
seafront protection at the water-
front marking the area to be
reclaimed from the sea, as well
as the construction of two mari-
nas, one to the west and one to
the east of this reclaimed land.
From the outset, the CDR com-
missions Sogreah (France) to
design the seafront protection
structure. Sogreah’s preliminary
design consists of a double de-
fense line made up of an outer
set of large, submerged concrete
blocks (caissons), a lagoon, and a
Based on studies carried out in
1993 by Dar Al Handasah for the
subsequently approved master
plan, the number of salvageable
commercial and residential
buildings in Beirut city center
amount to 292, including 27
public and religious buildings.
Public buildings include the
Grand Serail, seat of the Council
of Ministers, the Lebanese Par-
liament, the Beirut Municipality,
the Central Post Office, and sev-
eral ministries. Religious build-
ings comprise 17 churches,
mosques, and a synagogue rep-
resenting all religious denomi-
nations in Lebanon.
The objective is to set a high
benchmark for the renovation of
these properties. Solidere insists
upon prequalifying local and in-
ternational consultants and con-
tractors with special expertise in
the restoration of old buildings.
It establishes clear and strict
urban design and technical
guidelines for restoration work
in all preserved buildings, whether
conducted internally or by out-
side parties who have recuper-
ated or purchased the properties.
Regulations include retaining or
reinstating the original external
fabric and applying detailed
specifications for all materials
Approved by the Directorate
General of Urban Planning, the
specifications vary according to
the sector involved and the his-
torical or architectural impor-
tance of the building. They are
described and illustrated in the
Restoration Briefs prepared
for every building set for preser-
vation.
A recuperation policy is adopted
to salvage material such as cob-
blestones and granite curb-
stones, structural and decorative
wooden and cast iron elements,
terrazzo and decorative ceramic
tiles, and wooden doors and
windows with traditional value
from buildings that are not pre-
served. These salvaged materials
will be used in the restoration
of preserved buildings and the
pedestrian streets.

by the Board of Founders for a infrastructure works in the Tradi-
cash subscription of US$650 mil- tional City Center. The French
lion, 6.5 million Class B shares company Méthodes et Pilotage
of US$100 each are issued at par is selected as construction man-
upon the Company’s establish- ager, while Dar Al Handasah will
ment. handle detailed design and act
as supervising engineer. The
CDR hires Socotec to oversee
technical control on its behalf.
series of promenades adjacent to and workmanship. They also re-
the inner set of small box caissons. quire that renovations adhere to
Following hydraulic model test- fire and safety regulations and
ing of the design in Sogreah’s provide access for the disabled.
laboratories in France, as well as
several studies including a geo-
technical investigation of the sea
bed, tendering documents are
prepared for a design-and-build
scheme. Solidere asks eight
shortlisted companies to submit
offers based on the Sogreah de-
sign and allows them to propose
their own alternative designs.

Temporary Activities To introduce a new social des- Information Centers Beirut city center is a must-see Fairuz Concert Solidere launches its activities in the

tination to the city’s residents (and later to visitors)
and to give life to Beirut city center prior to the avail-
ability of habitable buildings, Solidere decides to use
empty lots for exhibitions and other purposes. An
agreement is signed with the Municipality to use
11,000 sq m in the Martyrs’ Square area for social pro-
grams and cultural activities, including a monthly flea
market (Souk El Barghout) and an exhibition of chil-
dren’s drawings from a competition organized by the
Company on the reconstruction of the city center.
94
for Lebanese and international visitors who want to city center with a concert for Lebanese singer Fairuz.
witness the extent of destruction and observe devel- Held in Martyrs’ Square, the concert attracts over
opment efforts. To provide these visitors with a vision 40,000 fans and rates highly on television stations in
of the master plan, Solidere sets up two information the Arab world, with over 125 million viewers.
centers. One is located in the Company’s temporary
offices on Riad El Solh Street and houses a 25 sq m
model of the project, directed primarily at rights hold-
ers, under a banner reading “Beirut is yours, ask about
it.” The second information center is in Martyrs’
Square to welcome visitors to the city center and ex-
plain the Company’s vision.
 Development
Early in the year, the Council
of Ministers ratifies a decree
approving the Beirut Central
District Master Plan prepared
by Dar Al Handasah, which has
developed out of extensive stud-
ies and public debate involving
local and foreign specialists.
Solidere begins to chart out the
implementation of the master
plan.
The extent of destruction of Beirut
city center produces a need and
opportunity for comprehensive
urban planning based on a care-
fully drawn, detailed, phased, and
coordinated plan of action. On
the one hand, Solidere’s primary
role is to restore the city’s his-
toric buildings and preserve its
townscape features; on the other
hand, it must prepare the land
and infrastructure needed to
attract and enable new property
developments of its own or by
third parties. A main goal is to
enhance the city’s intrinsic quali-
ties in order to attract investors,
visitors, and residents.
! — 63
62
In terms of urban planning, the
master plan stresses the topog-
raphy of Beirut city center, as well
as the surviving and heritage
buildings, townscape views,
neighborhood fabric, and the
many layers of historical mem-
ory forming the city’s heritage.
Furthermore, it ensures an effec-
tive connection between the
Traditional City Center and the
Waterfront District (the reclaimed
land) and between the whole
project and its surrounding areas.
The project includes the recon-
struction and development of a
maximum 4.69 million sq m of
floor space, accommodating a
broad, sustainable, and flexible
land use mix.
The city center is conceived of
not as a single, homogeneous
central district but as a cluster of
city quarters or sectors. Informed
by natural boundaries and land-
forms, street patterns and visual
corridors, past neighborhood
structure, and preserved fabrics,
it comprises ten sectors, each
with its own detailed plan and
regulations, as well as its own
unique character. The Traditional
City Center includes eight sec-
tors: Conservation Area, Beirut
Souks, Wadi Abou Jamil, Saifi,
Hotel District, Serail Corridor,
Ghalghoul and Murr Tower, and
Martyrs’ Square Axis. The Water-
front District is divided into sec-
tors A and D.
In preparation for future con-
struction and land sales, parcel-
lation and massing studies are
undertaken for all new develop-
ment areas inside the Traditional
City Center. The work entails
transforming the master plan into
development parcels, building
footprints, and three-dimensional
massing, with proposals for land-
use mix based on the planning
objectives for each sector.
Beirut Souks, named after the
Ottoman bazaar that once occu-
pied its site, is perceived as the
focal point of future retail and
commerce. The total destruction
of the Old Souks paves the way
for their reconstruction. New
sections include the Ayass, Tawile,
Al Jamil, and other former souks,
whose names refer to specialty
goods, an anchor retailer, or
well-known family names in
business. Following an interna-
tional design competition with
357 entries from 42 countries, a
detailed master plan for the Souks
develops, synthesizing the tradi-
tional features of the old areas
with the requirements of mod-
ern commercial activity.
Saifi and Wadi Abou Jamil are
planned as “special residential
policy”districts. Consultant Habib
Debs undertakes the detailed
sector plan and guidelines for
Saifi, while Francis Tibbalds (UK)
develops a similar urban village
plan and guidelines for Wadi
Abou Jamil. The aim is to produce
the framework for high-quality
city housing areas where compa-
rably scaled infill development
carefully complements a large
number of preserved buildings
and an attractive pedestrian en-
vironment of courts and squares,
with special measures to calm
traffic. The sector plans also
introduce a detailed set of urban
design and landscaping guide-
lines to ensure architectural
quality and harmony in scale,
massing, and facade detail, ma-
terials, and color.
After its design in the early 1970s
as the tallest building in Beirut,
construction on the Murr Tower,
a landmark at the western edge
of Wadi Abou Jamil, came to a
halt with the advent of war. Con-
cepts are developed for the
tower’s rehabilitation with Fos-
ters & Partners (UK) following a
limited design competition. The
structural engineers request de-
tailed testing of the existing
building’s belowground structure.
Archeology
Like many other ancient cities,
Beirut is built on the remains of
earlier settlements. In an effort
to shed light on Beirut’s rich past
and integrate this past into the
city’s reconstruction, Solidere
works with the Hariri Founda-
tion and UNDP to help coordi-
nate and finance archeological
surveys and excavations in the
Old City. The Lebanese Direc-
torate General of Antiquities
appoints site archeologists for
each excavation.
All archeological excavations
are to be carried out under a
UNESCO protocol specifically
devised for Beirut city center
and approved by the Govern-
ment. The protocol establishes
a delicate balance between pre-
serving high-value heritage and
permitting the city to recover
and develop.
Beirut city center turns into the
largest urban archeology site in
the world, with Lebanese and
foreign teams of experts from
many different countries leading
field operations. Contributors to
the project include the Lebanese
University, the American Univer-
sity of Beirut, the Institut Français
d’Archéologie du Proche-Orient,
the City of Paris, the Museum of
London, Amsterdam University,
Leiden University, and the Lev-
erhulme Foundation.
Extensive work takes place in
the area of the Old Souks, in
Martyrs’ Square, at the St George
Maronite Cathedral, and behind
the former Rivoli building,
where remains are found of
what experts believe to be a
Canaanite-Phoenician Tell.
Landscape
Landscaping is a key part of the
Beirut Central District Master
Plan, destined to contribute
significantly to creating a quality
environment in the Lebanese
capital. Beirut as a whole has a
poor pedestrian environment and
a very limited supply of green,
public spaces.
Providing an extensive framework
of landscaped public spaces and
pedestrian areas is foreseen as a
magnet to attract citizens and
visitors to the downtown, mak-
ing it Beirut’s main meeting
point. Quality public spaces are
also perceived as having a major
positive impact on land sales.
With green public spaces and
pedestrian promenades covering
39 ha of land, the city center,
representing 10 percent of mu-
nicipal Beirut, will contain half
of the capital’s green areas.
These outdoor escapes play an
integral role in the full experi-
ence of the city center and are
intertwined with a greater urban
vision. As an essential aspect of
urban regeneration, each will
enhance the beauty and envi-
ronmental quality of the area
and forge a special relationship
with the growing community of
residents, workers, and visitors.
Following a consultancy tender,
the InterScene (France) and
Maurice Bonfils consortium be-
gins work on a landscape master
plan to include street and av-
enue tree planting, promenades,
public squares, open spaces, and
gardens.
94

Ghaleb Mahmassani
on Structuring the Legal
Framework of Solidere
Dr. Ghaleb Mahmassani gained his Doctorate in
Law from the University of Lyon, France. He estab-
lished his law firm in Beirut in 1962 and currently
holds a number of prominent positions including
General Legal Counsel of Solidere since 1998, Vice-
President and acting President of the Beirut Stock
Exchange, and International Arbitrator and member
of the Permanent Arbitration Court in The Hague.
! — 65
64
In 1991, a 16-year war had just ended. What can you tell us about
the reality back then?
At the end of the Lebanese war , the state of destruction in many
areas of Lebanon, but particularly in Beirut’s city center , needed to
be addressed. There were several problems that needed to be re-
solved, and it was necessary to develop a framework to implement a
comprehensive solution. In the city center, the problems were mainly
related to town planning and architecture, to identifying sources to
finance rehabilitation and reconstruction, to clarifying ownership of
property and land and relationships between owners and tenants,
and to attending to the displaced as well as environmental hazards
and challenges related to culture and heritage.
Why was the reconstruction of the city center of prime importance?
Beirut city center was considered of prime importance in reposition-
ing Lebanon on the world map. The city center represented the eco-
nomic heart of the country and the focus of coexistence and
interaction between the various religious communities of the coun-
try. Lebanon and its people needed to move beyond warfare and its
inter-communal strife, and the city center was the best place to have
that happen. The city center was, before the war, home to at least 17
places of worship, serving various religious communities. It has dili-
gently regained that distinction.
It was that same year, 1991, that the Lebanese government
passed Law 117 to lay the legal framework for the creation of
Solidere. What was the reasoning behind such a law?
If the reconstruction of Beirut city center was to be left up to the right
holders, it would most likely have been disorganized. At the end of
the war, the majority of land and property owners and tenants in the
city center did not have the finances to rebuild. Furthermore, without
a proper plan and guidance, any reconstruction effort would have
been haphazard. Were it not for such a comprehensive solution, the
historic core would have remained half rebuilt to this day, and proba-
bly with fewer retained heritage buildings.
Bearing this in mind, the Lebanese authorities adopted
Law 117 to provide the legal framework for the formation of real es-
tate companies with the objective of reconstructing damaged areas in
accordance with a master plan approved by the Government.
Regarding Beirut city center, this solution satisfied several objectives.
Primarily, it would ensure that the area would be developed in an
orderly fashion. It would also ensure that the city center would regain
its past role as a lively melting pot with mixed land uses, that the
state would not have to contribute to the financing of reconstruction,
and that issues pertaining to the rights of landowners and other right
holders would be addressed.
In retrospect, the framework for the reconstruction of
Beirut city center has introduced and familiarized the people of
Lebanon with serious and extensive urban planning and has given
birth to an effective system of construction and rehabilitation.
You mentioned landowners and rights holders. What is the differ-
ence between the two, and how do they relate to one another?
What is the relationship between both groups and the Company?
Who are the rights holders in the city center?
Rights holders are primarily the land or property owners. However,
under the old Lebanese rental law, tenants are also rights holders,
and they have the right to a certain percentage of a property that
they occupy. In the wake of the war, questions of inheritance also
emerged as, in some cases, there were also the owners’ heirs and
other beneficiaries. It was not an easy process to evaluate and divide
these rights. The idea was to place all rights holders — owners, ten-
ants, and other public rights — into one large company. Judicial com-
mittees of reputable international experts were appointed to estimate
land and property values and evaluate the percentages that would be
appropriated to the different rights holders. The results of these studies
determined the current market value of land and properties at the
time, to be transformed into shares in the private company that would
be established to reconstruct and develop the city center. The capital of
the company would consist of the value of land translated into shares
for the rights holders (contributions in kind) and cash money raised
through an initial public offering of shares (cash contributions), the lat-
ter part being the cash required for the company to begin operations.
This gave rise to controversies. There were many who questioned
the legalities of such a valuation and challenged the whole idea,
which they perceived as the takeover of the city center by one
company. Can you explain?
There were some people who questioned the idea of one company
taking control of the reconstruction and development of the city cen-
ter. In particular, owners in the city center who had the necessary fi-
nances to manage the restoration of their own properties were
among the objectors. Others questioned the valuation results. In
their opinion, properties were undervalued. We questioned this issue
ourselves, but our consultants informed us that land and property
had to be valued at prevailing market value in their current condi-
tion, as in other cities around the world. Valuation experts could not
predict what would happen to land and property in the long term. At
the same time, it was normal for rights holders to be skeptical.
How could Solidere assuage the rights holders’ fears?
Once the Company was formed and the shares distributed among
rights holders and cash subscribers , the shares were immediately
placed on the Beirut Stock Exchange, which is not usually the case.
Under normal circumstances, shares can only be floated three years
after a company is established. In our case, it was to acknowledge our
responsibilities to our shareholders. They could at any time pull out or
buy into the Company as they followed its daily share activities.
What is the meaning of recuperation and how was it imple-
mented? Furthermore, there was a general consensus that recuper-
ation was costly to rights holders. How do you explain that?
Recuperation was the act of taking back ownership of a property in the
city center by an owner, tenant, or other rights holder. It was foreseen
that some owners or tenants could recuperate properties if they had the
necessary funds to rehabilitate them. However, they had to take into
account the other beneficiaries, according to the rental law still enacted
at the time. So the owner, tenant, or associate who wanted to recuper-
ate a property had to offer the other benificiaries the right to come back
against a participation in the recuperation costs, which amount to the
value of the property as evaluated by the judicial committees plus a 10
percent premium. Additionally, recuperation was conditional upon
restoration based on Solidere’s guidelines, which were put in place to
ensure a harmoniously preserved and regenerated city center.
The issue of archeology is one that keeps recurring. Layers of civi-
lizations continue to be uncovered in the city center. Though im-
portant, it is also hindering the development process. What are
the related legalities and responsibilities?
The archeological issue is complex. The law that prevails today per-
taining to archeological findings in Lebanon dates back to 1933. In
that regard, the Beirut Central District Master Plan development
guidelines stipulate that every developer must inform the Directorate
General of Antiquities and Ministry of Culture before beginning exca-
vations on a plot of land. Both authorities send an emissary to over-
see excavations and then give clearance for construction, usually
within a six-month period.
If archeology remains are uncovered, two possible scenarios follow. If
the findings are not deemed of high importance and can be re-
moved, they are either sent to the National Museum or temporarily
removed and then reinstated within the landscape of the develop-
ment. If the remains are considered of high importance, the Govern-
ment may place them on the national archeology inventory list. It
then has to be decided whether to stop development on the plot of
land in question. If development is stopped, the Government must
repossess this land at current market value.
Who took the initial decision to reclaim land along the city cen-
ter’s Mediterranean shoreline, and who is responsible for the en-
vironmental viability of the area that has become known as the
Waterfront District?
Under normal circumstances, it would have been up to the Govern-
ment to carry out a general impact study for land reclamation. In the
case of the Beirut city center, the Government gave Solidere full
rights over researching, studying, and commandeering such a proj-
ect. The issue was not about reclaiming land; it was about turning an
environmental hazard into an opportunity. The site in question was
that of a 16-year-old dump, containing everything from carcasses to
unexploded bombs. It was a costly venture, and the Company did an
accomplished job of clearing all the waste, recycling what was usable
and destroying what was not in an orderly manner. Thereafter, it re-
claimed the land area under the guidance of and in collaboration
with the best international expertise available.
Eighteen years of reconstruction and development have passed.
Eighteen years from the Company’s 35-year lifespan have passed.
What happens after the 35 years are over?
Initially, the vision was for a rapid reconstruction and development of
Beirut city center, and 25 years seemed like a good limit to set. As
work progressed, we asked for a 50-year extension and received ten.
Experience has demonstrated that unforeseen circumstances beyond
the Company’s control may emerge, and that the project could take
longer to be completed. If the need arises in the future, we will ask for
a further extension to complete our objective, which is the complete
development of the city center into a viable, sustainable area.
However, in legal form, at the end of the Solidere’s life, a liq-
uidator is appointed to sell off the land and properties that the Com-
pany owns. Once everything has been liquidated, the profits will be
distributed among shareholders based on their percentage ownership.
 Corporate

Beirut city center bears the brunt
of destruction from the Lebanese
war, with the entire infrastruc-
ture and two-thirds of the urban
fabric assessed in postwar sur-
veys as being beyond salvage.
In addition, the Normandy dump
site occupies a vast area of the
city center shoreline and creates
a major environmental hazard to
Beirut as a whole. Displaced per-
sons illegally populate unsafe
structures.
Fifteen years of war have left an
institutional vacuum; no public
sector agency is capable of taking
on such complex, large-scale
urban restructuring. The Gov-
ernment’s resources are already
stretched to their limit in an
ambitious, nationwide postwar
recovery program of physical
and social infrastructure and
institutional investment.
! — 67
66
The metropolitan plan for Greater The Lebanese Government
Beirut, completed in 1986 during passes Law 117, providing the
the war, recognized the vital im- legal framework to create real
portance of restoring and rede- estate companies with the main
veloping the city center, both objective of reconstructing areas
to symbolize postwar national damaged during the hostilities.
renewal and to help recover Reconstruction can only take
Beirut’s lost regional preemi- place in accordance with a mas-
nence. It is clear that this cannot ter plan, which must receive pre-
be achieved through small-scale, vious approval from the
piecemeal redevelopment. What Government. The Government
Beirut needs is a grand vision. commissions Dar Al Handasah
(Shair and Partners) to prepare a
Mindful of these factors and master plan for the Beirut Cen-
stepping up to the challenge, tral District.
the country’s first postwar Gov-
ernment under Prime Minister
Rafic Hariri is determined to
turn Beirut’s downtown disaster
into a rising phoenix through a
unique form of public–private
partnership. Lebanon’s modern
economy has always been heav-
ily service oriented and private
sector driven. Beirut’s postwar
urban recovery is therefore best
directed through neither con-
ventional public sector invest-
ment and management nor a
reliance on funding from aid
agencies, but rather through
concerted and rapid private
sector investment in a carefully
constructed institutional frame-
work, regulated by government
decree.

Beirut City Center Photographic Mission Six

photographers – Gabriele Basilico (Italy), Raymond
Depardon (France), Fouad El Khoury (Lebanon),
René Burri (Switzerland), Josef Koudelka (Czech Re-
public), and Robert Frank (Switzerland) – are invited
to Beirut for a special photographic mission to
record visual traces of the city center after the end of
the war and before reconstruction efforts. The collec-
tive project is financed by the Hariri Foundation and
a book Beyrouth centre-ville is published with Edition
du Cyprès (1992).
91
 Corporate Structure
THE REPORT
Corporate Structure

Board of Directors and General Management Organizational Chart

Corporate Finances
Corporate Funding
Liquidity
Exchange Listing and Ticker Symbols
Analysis of Share Prices
Dividend Distribution
Investor Relations
SHAREHOLDERS
Consolidated Financial Highlights
Summary of Operations in US$ million
BOARD OF
Stock Data per Share in US$ DIRECTORS
Financial Data in US$ million
Financial Ratios in %
GENERAL
MANAGEMENT
Independent Auditors’ Report

CHAIRMAN AND GENERAL MANAGER

Consolidated Financial statements
Consolidated Statement of Financial Position
Consolidated Statement of Income STRATEGY
AND PLANNING
Consolidated Statement of Comprehensive Income GENERAL MANAGER
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements GENERAL MANAGER
FOR DEVELOPMENT
Solidere Annual Report 2012:
The Chronicle

INVESTOR RELATIONS
AND CAPITAL MARKETS

CHIEF FINANCIAL OFFICER ASSISTANT GENERAL MANAGERS

CORPORATE TENDERING, BUSINESS OPERATIONS

AFFAIRS CONTRACTING, OPERATIONS
PROCUREMENT, AND RELATIONS
AND SPECIAL WITH PUBLIC
CORPORATE AUTHORITIES
ASSIGNMENTS

URBAN DESIGN ARCHITECTURE LANDSCAPING URBAN REAL ESTATE INFORMATION CORPORATE FINANCIAL TREASURY AND CORPORATE BOARD OF TENDERING PROPERTY QUALITY INFRA- OPERATIONS PROJECT LEGAL ADMINIS- COMMERCIAL URBAN CORPORATE COMMUNI- MULTI-
AND MASTER AND INTERIOR AND PUBLIC PLANNING DEVELOPMENT TECHNOLOGY MANAGEMENT ACCOUNTING FINANCIAL FINANCE DIRECTORS CONTRACTING ADMINISTRA- CONTROL STRUCTURE MAINTENANCE MANAGEMENT TRATION SALES, LEASING MANAGEMENT REPORTING CATIONS DISCIPLINARY
PLANNING DESIGN SPACE DESIGN ACTIVITIES CONTROL ADMINISTRA- AND TION AND SITE AND TECHNICAL AND RETAIL AND AND PUBLIC DESIGN
TIVE AFFAIRS PROCUREMENT LOGISTICS SERVICES MANAGEMENT PUBLICATIONS RELATIONS

Site Architectural Landscaping Urban Planning Strategy Network Risk General Treasury Financial Corporate Tendering for Contract Design Infrastructure Real Estate Restoration Legal Human Land Sales Town Corporate Promotion and Corporate
Assessment Assessment Assessment Assessment Formulation on Administration Management Accounting and Cash Analysis and Documentation Infrastructure Administration Control Execution and Operations and Counsel Resources Planning Research Advertising and Cultural
of Real Estate of Real Estate Real Estate Management Modeling and Archiving and Construction Maintenance Maintenance New Real Estate Reporting Publishing
Master Plan Projects Projects Strategic Land Projects Enterprise Business Taxation System Activities Recuperation Execution Developments Contract General Leasing Quality and Editorial Media Relations
Vision and Use Planning Resource Development Budget Control Business Control Landscape Technical Structuring and Services Control and Corporate
Concept Design Design Real Estate Planning Financial Planning Corporate Procurement of Public Execution and Support Third-Party Management Beirut Souks Supervision Specialized Events and Communication
Development Development Data Analysis and Parameters Waterfront Statements Stock Systems and Services and Services Technical Maintenance Services Developments Management Publications Activities Design
Master Plan Briefs Briefs Urban Planning Corporate District Management Corporate Procedures Supplies Control Site
Development Research Marketing and Application Development Audit Funding Property Third-Party Car Parking Beirut Retail Management Website Corporate Editing
Design Design Commercial Development Relations Financial Special Management Facilities Marina Management and Building Development Social
Regulatory Development Development Archeology Strategy Broadband Reporting Financial Corporate Services Control Responsibility Production
Master Plan and Management Management Heritage Formulation Enterprise Network Markets Assignments Site CCTV
Urban Design and Cultural Project Systems Relations with Logistics Surveillance Design Review
Guidelines Third-Party Landscaping Developments Business Management Public Support Network
Investors of Public Spaces Development Authorities Geographic
Computer Project Reviews Management Corporate Information
Graphics Document Property System
Production Hospitality Real Management Fiscal
Estate Concept Management Signage
and Program Control
Development

Exploratory
Relations and
Negotiations
with Strategic
Partners

Corporate and Financial Report Solidere issues an- The report includes a summary about the company's
nual reports to its shareholders that summarize its ac- corporate finances, consolidated financial highlights,
tivities during a specific year and highlight milestones auditors’ report, and consolidated financial statements.
achieved over the years.
Board of Directors
and General management
Corporate Management

CHAIRMAN VICE CHAIRMAN VICE CHAIRMAN

AND GENERAL MANAGER Fadi Boustany Maher Beydoun
Nasser Chammaa

MEMBER OF THE BOARD MEMBER OF THE BOARD MEMBER OF THE BOARD

AND GENERAL MANAGER Oussama Kabbani Raphael Sabbagha
Mounir Douaidy

MEMBER OF THE BOARD MEMBER OF THE BOARD MEMBER OF THE BOARD

Raja Salemeh Mosbah Kanafani Joseph Asseily

MEMBER OF THE BOARD MEMBER OF THE BOARD MEMBER OF THE BOARD

Basile Yared Maher Daouk Makram Abboud

73
Corporate Finances CORPORATE FUNDING
Treasury, Shares, and Investor Relations In 2012, Solidere pursued the practice of
resorting to flexible short-term credit
arrangements, mainly temporary overdrafts
at competitive interest rates. All short-term
bank facility signed in previous years were
renewed.
LIQUIDITY
The consolidated balance sheet at year end
shows positions of US$ 163.5 million for
cash and cash balances and US$ 554.1 mil-
lion for accounts and notes receivable, and
US$ 646.9 million for bank overdrafts and
short-term facilities.
The Company maintained its policy of invest-
ing its liquid funds in assets presenting mini-
mum risk and with top ranking banking and
financial institutions in the domestic and
international markets. For efficient cash
management, Solidere also arranged with
local banks certain revolving current overdraft
facilities, utilized and refunded according to
cash needs and availability.
An annualized interest rate of about 4.11%
was earned on aggregate cash placements
for the year.
EXCHANGE LISTINGS AND TICKER
SYMBOLS
Beirut Stock Exchange
Solidere A shares: SOLA.BY
Solidere B shares: SOLB.BY
London Stock Exchange
GDRs: SOLAq.L
A N A LY S I S O F S H A R E P R I C E S
The slow, downward drift in share prices
continued over the year as regional turmoil
worsened and local political bickering inten-
sified. Solidere shares were under pressure
as well, declining throughout the year and
eventually reaching a seven-year low on rel-
atively quiet market.
The share prices witnessed a mild rally dur-
ing the month of May following the release
of the Company’s performance results on the
high end of market estimates. However, the
share prices then decreased after a serious
security event in the country that pulled back
most market participants to the sidelines.
This occurred in spite of many recommenda-
tions from reputable local and international
financial institutions that estimated the value
of the shares to be higher than current mar-
ket prices. Toward the end of the year, an-
other price rally succeeded in pushing the
shares above their lows, helping to close the
year on a positive note.
74
It is worth noting that the share price
bounced back every time market prices
neared the $12.00 level throughout the year.
This represents the market’s recognition of
the Company’s strong fundamentals, which
allow it to weather this temporary period of
instability in the region.
Class A shares closed the year at $13.00, rep-
resenting a 9.59% decrease over the closing
price of the previous year and Class B shares
closed at $12.93, a 10.82% decrease from the
2011 closing level. Similarly, the GDRs
traded on the London Stock Exchange
closed the year down at $13.00, a 9.02% de-
crease compared to 2011. A S H A R E S - D A I LY T R A D E S 2 0 1 2
Both classes of shares fluctuated between a SHARE PRICE US$ VOLUME
high of $15.35 and a low of $12.04. Trading
was relatively sluggish, with a total of around 1,051,789
10 million shares changing hands for a cu- 15 200,000
mulative value of about $133 million. This
represents about 6% of the Company’s capi-
tal. The average daily volume was about 14 150,000
41,000 shares, worth around $551,000 in
total. Thus, the average price for the year was 13 100,000
about $13.22, a 14.7% decrease compared to
the previous year.
12 50,000
DIVIDEND DISTRIBUTION
11 0
03 Jan 04 May 31 Aug 31 Dec
Since inception, Solidere has distributed div-
idends in 11 out of its 19 years of operations
share price - in us$
for a total value of US$ 1.12 billion (out of an volume of shares traded
aggregate net income of US$ 1.52 billion).
Solidere stands by its commitment to distrib-
ute dividends to shareholders depending on
the level of profits and the available liquidity
after providing capital expenditure for infra-
structure and real estate development projects.
B S H A R E S - D A I LY T R A D E S 2 0 1 2
INVESTOR RELATIONS
As part of its ongoing efforts to achieve wider SHARE PRICE US$ VOLUME
and more diversified exposure to the invest-
ment community, Solidere engaged with 1,006,150
institutional investors/analysts in meetings 15 200,000
in various local, regional, and international
investor conferences, with the aim to inform
14 150,000
and provide updates on the Company’s oper-
ational and financial developments. Attending
investors were mainly from the United States, 13 100,000
the United Kingdom and the Middle East and
North Africa region.
12 50,000
Solidere welcomed representatives from a
number of investment funds, research houses 11 0
and other financial institutions throughout 03 Jan 04 May 31 Aug 31 Dec
the year. Citi, BlomInvest, and FFA published
equity coverage on the Company. share price - in us$
volume of shares traded
75
Consolidated Financial Independent
Highlights Auditors’ Report
To the shareholders
Summary of Results
12 11 The Lebanese Company for the
Development and Reconstruction
of Beirut Central District s.a.l.
Beirut - Lebanon We have audited the accompanying consolidated financial statements of The Lebanese Com-
SUMMARY OF OPERATIONS IN US$ MILLION
pany for the Development and Reconstruction of Beirut Central District s.a.l. (the Company)
and its Subsidiaries (the Group), which comprise the consolidated statement of financial posi-
Gross land sales 49.6 241.7 tion as at December 31, 2012, and the consolidated statement of income, statement of compre-
Gross rental income 58.1 49.9
hensive income, statement of changes in equity and statement of cash flows for the year then
General and administrative expenses 38.0 38.2
ended, and a summary of significant accounting policies and other explanatory information.
Net income 17.5 158.8

M A NAG E M E N T ’ S R E S P O N S I B I L I T Y F O R T H E F I NA N C I A L S TAT E M E N T S

S T O C K DA T A P E R S H A R E I N U S $
Management is responsible for the preparation and fair presentation of these financial state-
ments in accordance with International Financial Reporting Standards and for such internal
Earnings 0.1104 1.0285
control as management determines is necessary to enable the preparation and fair presentation
Shareholders’ equity 11.92 12.3
Stock closing price range of financial statements that are free from material misstatement, whether due to fraud or error.
A shares 14.99 - 12.15 20.40 - 13.40
B shares 14.82 - 12.13 20.07 - 13.11 AUDITOR’S RESPONSIBILITY
GDRs 15.00 - 12.00 20.24 - 13.35
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing. Those stan-
F I N A N C I A L DA T A I N U S $ M I L L I O N dards require that we comply with ethical requirements and plan and perform the audit to ob-
tain reasonable assurance about whether the financial statements are free from material
Cash and securities 163.5 174.1 misstatement.
Accounts and notes receivable 554.1 551.3
Inventory of land and projects in progress 1,249.0 1,178.3 An audit involves performing procedures to obtain audit evidence about the amounts and dis-
Investment properties, net 457.0 444.6 closures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements,
Retained earnings 196.8 263.1
whether due to fraud or error. In making those risk assessments, the auditor considers internal
Legal reserves 150.4 148.2
control relevant to the entity’s preparation and fair presentation of the financial statements in
Treasury stock (84.2) (134.9)
Total shareholders’ equity 1,909.3 1,935.9 order to design audit procedures that are appropriate in the circumstances, but not for the pur-
pose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
F I NA N C I A L R AT I O S I N %
accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.

Gross profit margin - land sales 85.63 83.72

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
Return on liquid assets 4.11 4.16
Debt to equity 37.51 30.48 basis for our audit opinion.

OPINION

In our opinion, the consolidated financial statements present fairly, in all material respects, the fi-
nancial position of The Lebanese Company for the Development and Reconstruction of Beirut
Central District s.a.l. and its Subsidiaries (the Group) as of December 31, 2012, and of its consol-
idated financial performance and its cash flows for the year then ended in accordance with Inter-
national Financial Reporting Standards.

Beirut, Lebanon
May 27, 2013 Deloitte & Touche Ernst & Young

76 77
Consolidated Statement Consolidated Statement
of Financial Position of Income
The accompanying notes form an integral part The accompanying notes form an integral part
of these consolidated financial statements of these consolidated financial statements

DECEMBER 31, 2012 2011 YEAR ENDED DECEMBER 31, 2012 2011
notes US$ US$ notes US$ US$

ASSETS Revenues from land sales 49,580,377 241,722,548

Revenues from rented properties 58,132,896 49,862,775
Cash and banks balances 7 163,463,816 174,138,680
Revenues from rendered services 23 6,141,662 5,280,128
Prepayments and other debit balances 8 55,628,848 47,658,853
Revenues from hospitality 6,593,970 6,681,294
Accounts and notes receivables, net 9 554,078,045 551,341,792
Cost of land sales (7,122,763) (39,344,564)
Inventory of land and projects in progress 10 1,248,961,424 1,178,348,256
Charges on rented properties 24 (27,541,099) (21,166,871)
Investment properties, net 11 457,015,039 444,629,160
Cost of rendered services 25 (6,855,684) (5,901,952)
Investment in associates 12 314,965,852 317,731,762
Cost of hospitality (10,590,675) (9,896,404)
Fixed assets, net 13 72,181,096 70,316,628
Gain on sale and disposal of investment
Total Assets 2,866,294,120 2,784,165,131
properties 4,376,528 625,809
Net revenues from operations 72,715,212 227,862,763
Share result from associates 12 3,266,683 3,967,997
General and administrative expenses 26 (37,960,180) (38,196,142)
LIABILITIES
Depreciation of fixed assets 13 (8,160,418) (6,422,073)
Bank overdrafts and short term facilities 14 646,886,436 520,049,200 Provision for contingencies 15 (7,986,410) -
Accounts payable and other liabilities 15 121,132,130 144,809,477 Other expenses 28 (233,877) (5,066,404)
Dividends payable 16 78,776,194 84,195,863 Other income 587,656 613,570
Deferred revenue and other credit balances 17 40,835,805 29,058,568 Taxes, fees and stamps 15(c) (3,956,465) (2,874,543)
Loans from banks and financial institutions 18 69,320,670 70,095,747
Total Liabilities 956,951,235 848,208,855
Interest income 27 29,077,466 24,687,011
Interest expense (27,496,818) (21,081,965)
Profit before tax 19,852,849 183,490,214
Income tax expense 15 (2,322,812) (24,691,842)
SHAREHOLDERS’ EQUITY Profit for the year 17,530,037 158,798,372
Issued capital at par value US$10 per share: 19 Basic/diluted earnings per share 29 0.1104 1.0285
100,000,000 class (A) shares 1,000,000,000 1,000,000,000
65,000,000 class (B) shares 650,000,000 650,000,000 Attributable to:
1,650,000,000 1,650,000,000 Equity owners of the parent 17,945,447 159,029,668
Non-controlling interest (415,410) (231,296)
Profit for the year 17,530,037 158,798,372
Legal reserve 20 150,411,796 148,210,183
Retained earnings 196,787,910 263,104,931
Cumulative foreign currency translation reserve (470,351) (295,169)
(Deficit)/surplus on treasury shares’ activity (2,446,798) 10,166,079
Less: Treasury shares 21 (84,210,286) (134,915,772)
Total equity attributable to the owners of the parent 1,910,072,271 1,936,270,252

Non-controlling interest 22 (729,386) (313,976)

Total Equity 1,909,342,885 1,935,956,276

Total Liabilities and Shareholders’ Equity 2,866,294,120 2,784,165,131

78 79
80
Attributable to:
Profit for the year
YEAR ENDED DECEMBER 31,

Non-controlling interest
Equity owners of the parent
Other comprehensive income:

Total comprehensive income

Foreign currency translation reserve
Consolidated Statement

of these consolidated financial statements

Other comprehensive loss for the year

of Comprehensive Income
The accompanying notes form an integral part

12
notes

17,354,855
17,770,265
17,354,855
17,530,037
US$
2012

(415,410)
(175,182)
(175,182)

158,653,989
158,885,285
158,653,989
158,798,372
US$
2011

(231,296)
(144,383)
(144,383)

Consolidated Statement
of Changes In Equity
The accompanying notes form an integral part
of these consolidated financial statements

TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT

(DEFICIT)
CUMULATIVE SURPLUS ON
SHARE LEGAL RETAINED FOREIGN CURRENCY TREASURY TREASURY NON-CONTROLLING
CAPITAL RESERVE EARNINGSTRANSLATION RESERVE SHARES’ ACTIVITY SHARES TOTAL INTEREST TOTAL
US$ US$ US$ US$ US$ US$ US$ US$ US$

Balance at December 31, 2010 1,650,000,000 131,952,540 267,233,047 (150,786) 13,770,056 (224,507,599) 1,838,297,258 (82,680) 1,838,214,578
Allocation to legal reserve from
2011 profit - 16,257,643 (16,257,643) - - - - - -

Total comprehensive income - - 159,029,668 (144,383) - - 158,885,285 (231,296) 158,653,989

Dividends - Note 16 - - (146,900,141) - (3,603,977) 89,591,827 (60,912,291) - (60,912,291)
Balance at December 31, 2011 1,650,000,000 148,210,183 263,104,931 (295,169) 10,166,079 (134,915,772) 1,936,270,252 (313,976) 1,935,956,276
Allocation to legal reserve from
2012 profit - 2,201,613 (2,201,613) - - - - - -
Total comprehensive income - - 17,945,447 (175,182) - - 17,770,265 (415,410) 17,354,855
Dividends - Note 16 - - (82,060,855) - (12,612,877) 50,705,486 (43,968,246) - (43,968,246)
Balance at December 31, 2012 1,650,000,000 150,411,796 196,787,910 (470,351) (2,446,798) (84,210,286) 1,910,072,271 (729,386) 1,909,342,885
81
 Formation and Objective Adoption of New and Revised
Consolidated Statement Notes to the Consolidated
of Cash Flows
The accompanying notes form an integral part
Financial Statements
Year ended December 31, 2012
1 of the Company
2 International Financial Report-
ing Standards (Ifrss)

of these consolidated financial statements 2 . 1 S TA N DA R D S A N D I N T E R P R E TA -

The Lebanese Company for the Develop- TIONS EFFECTIVE FOR THE
ment and Reconstruction of Beirut Central CURRENT PERIOD
District s.a.l. (SOLIDERE) (the Company)
was established as a Lebanese joint stock The following revised standard has been ap-
company on May 5, 1994 based on Law No. plied in the current year with no material
2012 117/91, and was registered on May 10, 1994 impact on the disclosures and amounts re-
YEAR ENDED DECEMBER 31, 2011
notes US$ US$ under Commercial Registration No. 67000. ported for the current and prior years, but
The articles of incorporation of the Company may affect the accounting for future transac-
CASH FLOWS USED IN OPERATING ACTIVITIES were approved by Decree No. 2537 dated tions or arrangements:
July 22, 1992.
Profit for the year before income tax 19,852,849 183,490,214 Amendments to IAS 12 Income Taxes pro-
Adjustments to reconcile profit to net cash used in vide an exception to the general principles of
The objective of the Company, is to acquire
operating activities: IAS 12 for investment property measured
real estate properties, to finance and ensure
Depreciation 30 17,757,671 13,538,734 using the fair value model in IAS 40 Invest-
the execution of all infrastructure works in
Gain on sale of investment properties 11 (4,376,528) (625,809) ment Property by the introduction of a re-
the Beirut Central District (BCD) area, to
Loss on sale of fixed assets 526 - buttable presumption that the carrying
prepare and reconstruct the BCD area, to re-
Loss of ownership of investment properties - 1,275,219 amount of the investment property will be
construct or restore the existing buildings, to
Provision for problematic receivables (290,136) 290,136 recovered entirely through sale.
erect buildings and sell, lease or exploit such
Provision for end-of-service indemnity and other charges 15(d) 2,348,327 2,298,404
buildings and lots and to develop the landfill
Provision for contingencies 7,986,410 - 2 . 2 N E W A N D R E V I S E D S TA N DA R D S
on the seaside.
Additional tax assessment 2,500,000 - IN ISSUE BUT NOT YET EFFECTIVE
Share result from an associate 12 (3,266,683) (3,967,997)
The duration of the Company is 25 years,
Interest income 27 (29,077,466) (24,687,011) The Group has not applied the following
beginning from the date of establishment.
Interest expense 30 30,737,755 24,353,558 new standards, amendments and interpreta-
An extraordinary general assembly dated
Changes in working capital: tions that have been issued but not yet effec-
June 29, 1998 resolved to amend the dura-
Prepayments and other debit balances 8,659,589 8,653,835 tive:
tion of the Company to be 75 years begin-
Accounts and notes receivable (3,142,061) (65,019,448)
ning from the date of establishment. During
Inventory of land and projects in progress 30 (94,487,825) (103,690,054)
2005, the Council of Ministers approved the
Accounts payable and other liabilities (13,447,113) 3,055,245
extension of the duration of the Company
Deferred revenues and other credit balances 17 11,777,237 (17,151,577)
for 10 years.
Interest received 12,447,883 13,175,981
The Company, based on law No.117/91
Income tax paid (24,691,842) (35,288,373)
mentioned above, was exempt from income
Net cash used in operating activities (58,711,407) (298,943)
tax for a period of ten years beginning on the
date of formation. As such beginning May
10, 2004, the Company became subject to in-
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES come tax.
Short term deposit 1,353,808 (269,317)
Pledged term deposits with banks - (19) An extraordinary general assembly dated
Receivable from recuperated properties - 191,773 November 13, 2006 resolved to amend the
Acquisition of fixed assets 13&30 (8,497,552) (17,500,628) objective of the Company to include provid-
Acquisition of investment properties 11&30 (2,542,737) (2,059,649) ing services and consultancy in real estate
Proceeds from sale of investment properties 11 6,129,002 1,231,472 development for projects outside the BCD
Proceeds from sale of fixed assets 11 1,153,929 1,002,330 area and all over the world.
Investment in associates 12 5,857,411 (3,978)
Net cash provided by/(used in) investing activities 3,453,861 (17,408,016) During 2007, the Company granted Solidere
International Limited (an associate) the right
to use the “Solidere” brand in the execution
CASH FLOWS USED IN FINANCING ACTIVITIES
of real estate projects outside the Beirut Cen-
tral District area of Lebanon.
Bank loans (775,077) 61,847,227
Dividends paid 16 (44,735,908) (63,044,305) The Company’s shares are listed on the
Treasury shares (4,652,007) - Beirut stock exchange and Global Depository
Interest paid (30,737,755) (24,353,558) Receipts (GDR) are listed on the London
Short term facilities 39,360,646 44,603,822 stock exchange (International Trading List).
Net cash used in financing activities (41,540,101) 19,053,186

Net change in cash and cash equivalents (96,797,647) 1,346,227

Cash and cash equivalents — Beginning of the year 82,980,898 81,634,671
Cash and cash equivalents — End of the year 30 (13,816,749) 82,980,898

82 83
 EFFECTIVE FOR ANNUAL PERIODS EFFECTIVE FOR ANNUAL PERIODS
BEGINNING ON OR AFTER BEGINNING ON OR AFTER

> Amendments to IAS 1 – Presentation of Other Comprehensive Income. The amendments retain the
> January 1, 2015 July 1, 2012
IFRS 9 Financial Instruments issued in November 2009 and amended in October 2010 intro- option to present profit or loss and other comprehensive income in either a single statement or in
duces new requirements for the classification and measurement of financial assets and finan- two separate statements. However, items of other comprehensive income are required to be
cial liabilities and for derecognition. IFRS 9 requires all recognized financial assets that are grouped into those that will and will not subsequently be reclassified to profit or loss with tax on
within the scope of IAS 39 to be subsequently measured at amortized cost or fair value. Specif- items of other comprehensive income required to be allocated on the same basis.
ically, debt investments that are held within a business model whose objective is to collect
the contractual cash flows, and that have contractual cash flows that are solely payments of
principal and interest on the principal outstanding are generally measured at amortized cost. Amendments to IAS 19 Employee Benefits eliminate the“corridor approach”and therefore require January 1, 2013
All other debt investments and equity investments are measured at their fair values. Financial an entity to recognize changes in defined benefit plan obligations and plan assets when they
assets representing equity securities designated at fair value through profit or loss or fair value occur.
through other comprehensive income cannot be reclassified after initial recognition. At initial
recognition, an entity may make an irrevocable election to present in other comprehensive Amendments to IFRS 7 Financial Instruments: Disclosures enhancing disclosures about offsetting January 1, 2013
income subsequent changes in the fair value of an investment in an equity instrument that is of financial assets and liabilities.
not held for trading. The gain or loss that is presented in other comprehensive income includes
any related foreign exchange component. Dividends on such investments are recognized in
profit or loss in accordance with IAS 18 Revenue unless the dividend clearly represents a re- > Amendments to IAS 32 Financial Instruments: January 1, 2014
covery of part of the cost of the investment. Amounts presented in other comprehensive in- - Presentation relating to application guidance on the offsetting of financial assets and financial
come shall not be subsequently transferred to profit or loss. However, the entity may transfer liabilities.
the cumulative gain or loss within equity. - Resulting from Annual Improvements 2009, 2011 cycle (tax effect of equity distributions)

> IFRS 10 Consolidated Financial Statements* replaces the parts of IAS 27 Consolidated and Sepa-
rate Financial Statements that deal with consolidated financial statements, and SIC 12 Consol-
idation - Special Purpose Entities. IFRS 10 uses control as the single basis for consolidation,
irrespective of the nature of the investee and includes a new definition of control. IFRS 10 re-
quires retrospective application subject to certain transitional provisions providing an alter-
native treatment in certain circumstances. IAS 27 Consolidated and Separate Financial
Statements* and IAS 28 Investments in Associates and Joint Ventures* have been amended for
the issuance of IFRS 10 and SIC – 12 consolidation Special Purpose Entities will be withdrawn
upon the effective date of IFRS 10.
January 1, 2013 IAS 27 Separate Financial Statements (as revised in 2011) as a consequence of the new IFRS 10 January 1, 2013
and IFRS 12, what remains in IAS 27 is limited to accounting for subsidiaries , jointly controlled
entities and associates in separate financial statements.
IAS 28 Investment in Associates and Joint Ventures (as revised in 2011): As a consequence of the January 1, 2013
new IFRS 11 and 12, IAS 28 has been renamed IAS 28 Investments in Associates and Joint Ventures,
and describes the application of the equity method to investments in joint ventures in addition
to associates.

> IFRS 11 Joint Arrangements* replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly Con- January 1, 2013
trolled Entities - Non monetary Contributions by Venturers. IFRS 11 establishes two types of joint
arrangements: Joint operations and joint ventures. The two types of joint arrangements are
distinguished by the rights and obligations of those parties to the joint arrangement. In addi-
tion, joint ventures under IFRS 11 are required to be accounted for using the equity method
of accounting, whereas jointly controlled entities under IAS 31 can be accounted for using
the equity method of accounting or proportionate. IAS 28 Investments in Associates and Joint
Ventures has been amended for the issuance of IFRS 11 and SIC – 13 Jointly Control Entities
will be withdrawn upon the effective date of IFRS 11.

> IFRS 12 Disclosure of Interests in Other Entities* is a disclosure standard and is applicable to January 1, 2013
entities that have interests in subsidiaries, joint arrangements, associates and/or unconsoli-
dated structured entities. In general, the disclosure requirements in IFRS 12 are more extensive
than those in the current standards.

> Amendment to IFRSs 10, 11 and 12 on transition guidance: These amendments provide ad- January 1, 2013
ditional transition relief to IFRSs 10, 11 and 12, limiting the requirement to provide adjusted
comparative information to only the preceding comparative period. For disclosures related to
unconsolidated structured entities, the amendments will remove the requirement to present
comparative information for periods before IFRS 12 is first applied.

> IFRS 13 Fair Value Measurement defines fair value, establishes a single framework for measuring January 1, 2013
fair value, and requires disclosures about fair value measurement. The scope of IFRS 13 is
broad and applies to both financial and non-financial items for which other IFRSs require or
permit fair value measurement and disclosures about fair value measurements, except in spec-
ified circumstances. In general, the disclosure requirements in IFRS 13 are more extensive
than those required in the current standards.

84 85
Annual Improvements May 2012
These improvements will not have an impact
on the Group, but include:
IFRS 1 First-time Adoption of International
Financial Reporting Standards
This improvement clarifies that an entity that
stopped applying IFRS in the past and
chooses, or is required, to apply IFRS, has the
option to re-apply IFRS 1. If IFRS 1 is not re-
applied, an entity must retrospectively restate
its financial statements as if it had never
stopped applying IFRS.
IAS 1 Presentation of Financial Statements
This improvement clarifies the difference be-
tween voluntary additional comparative infor-
mation and the minimum required comparative
information. Generally, the minimum required
comparative information is the previous period.
IAS 16 Property Plant and Equipment
This improvement clarifies that major spare
parts and servicing equipment that meet the
definition of property, plant and equipment
are not inventory.
IAS 32 Financial Instruments, Presentation
This improvement clarifies that income taxes
arising from distributions to equity holders are
accounted for in accordance with IAS 12 In-
come Taxes.
Group entities comprise the following:
COMPANY
Beirut Water Front Development s.a.l. (Joint Venture)
(Proportionate consolidation)
Beirut Real Estate Management and Services s.a.l.
(Joint Venture), (Proportionate consolidation)
Solidere Management Services s.a.l.
Solidere Management Services (Offshore) s.a.l.
Solidere International Holdings s.a.l.
BHC Holding s.a.l. and its Subsidiaries
86
IAS 34 Interim Financial Reporting
The amendment aligns the disclosure require-
ments for total segment assets with total seg-
ment liabilities in interim financial statements.
This clarification also ensures that interim dis-
closures are aligned with annual disclosures.
These improvements are effective for annual
periods beginning on or after 1 January 2013.
* In May 2011, a package of five Standards on
consolidation, joint arrangements, associates
and disclosures was issued, consisting of
IFRS 10, IFRS 11, IFRS 12, IAS 27 (as revised
in 2011) and IAS 28 (as revised in 2011).
These five standards are effective for annual
periods beginning on or after 1 January
2013. Earlier application is permitted pro-
vided that all of these five standards are ap-
plied early at the same time.
Management anticipates that the adoption of
the above Standards and Interpretation will
have no material impact on the financial state-
ments of the Group in the period of initial ap-
plication, except for IFRS 9 and IFRS 13 which
may affect the amounts reported in the finan-
cial statements and result in more extensive
disclosures in the financial statements.
OWNERSHIP
SHARE
% of the instrument.
50
45
100
100
100
100
Summary of Significant
3 Accounting Policies
The consolidated financial statements have
been prepared in accordance with Interna-
tional Financial Reporting Standards.
The consolidated financial statements are pre-
sented in U.S. Dollars.
The consolidated financial statements are pre-
pared under the historical cost convention as
modified for the measurement at fair value of
available-for-sale financial assets and deriva-
tives, as applicable.
The consolidated financial statements incor-
porate the financial statements of The
Lebanese Company for the Development and
Reconstruction of Beirut Central District s.a.l.
and its controlled subsidiaries drawn up to
December 31 of each year. Control is achieved
where the Group has the power to govern the
financial and operating policies of an entity so
as to obtain benefits from its activities.
Where necessary, adjustments are made to the
financial statements of subsidiaries to bring
their accounting policies in line with those
used by other members of the Group.
All intra-Group balances, transactions, in-
come and expenses and profits and losses re-
sulting from intra-Group transactions are
eliminated in full.
DATE OF
ESTABLISHMENT ACTIVITY
April 2004 Real Estate
Development
September 2005 Real Estate
Management
June 2006 Real Estate
Management
March 2007 Real Estate
Management
May 2007 Holding
March 2010 Hospitality
Changes in the Group’s ownership interests in
subsidiaries that do not result in the Group los-
ing control over the subsidiaries are accounted
for as equity transactions. The carrying amounts
of the Group’s interests and the non-controlling
interests are adjusted to reflect the changes in
their relative interests in the subsidiaries. Any
difference between the amount by which the
non-controlling interests are adjusted and the
fair value of the consideration paid or received
is recognized directly in equity and attributed to
owners of the Company.
Upon the loss of control, the Group derecog-
nizes the assets and liabilities of the subsidiary,
any non-controlling interests and the other
components of equity related to the subsidiary.
Any surplus or deficit arising on the loss of con-
trol is recognized in profit or loss. If the Group
retains any interest in the previous subsidiary,
then such interest is measured at fair value at
the date that control is lost.
The significant accounting policies adopted
are set here below:
A . BA S I S O F P R E S E N TAT I O N :
In view of the long term nature and particulars
of the Group’s operations, the consolidated fi-
nancial statements are presented on the basis
that the operations have realization and liqui-
dation periods spread over the duration of the
Group and which are subject to market condi-
tions and other factors commonly associated
with development projects; as such, the assets
and liabilities are reflected in the statement of
financial position without distinction between
current and long-term classifications.
B. FOREIGN CURRENCIES:
The functional and presentation currency
is the U.S. Dollar, in accordance with the
applicable law, which reflects the economic
substance of the underlying events and cir-
cumstances of the Group. Transactions denom-
inated in other currencies are translated into
U.S. Dollar at the exchange rates prevailing at
the dates of the transactions. Monetary assets
and liabilities stated in currencies other than
the U.S. Dollar are translated at the rates of ex-
change prevailing at the end of the year. The re-
sulting exchange gain or loss which is not
material is reflected in the consolidated state-
ment of income.
For the purposes of presenting consolidated fi-
nancial statements, the assets and liabilities of
the Group’s foreign operations are translated
into Lebanese Pound using exchange rates pre-
vailing at the end of each reporting period. In-
come and expense items are translated at the
average exchange rates for the period, unless
exchange rates fluctuate significantly during
that period, in which case the exchange rates at
the dates of the transactions are used. Exchange
differences arising, if any, are recognized in
other comprehensive income and accumulated
in equity (attributed to non-controlling interests
as appropriate). Such exchange differences are
recognized in profit or loss in the period in
which the foreign operation is disposed of.
C . I M PA I R M E N T A N D
UNCOLLECTIBILITY
OF FINANCIAL ASSETS:
An assessment is made at each consolidated
statement of financial position date to deter-
mine whether there is objective evidence that a
financial asset or group of financial assets may
be impaired. If such evidence exists, the esti-
mated recoverable amount of that asset and any
impairment loss are determined based on the
present value of expected future cash flows. Im-
pairment losses are recognized in the consoli-
dated statement of income.
D. ACCOUNTS AND NOTES
R E C E I VA B L E :
Accounts and notes receivable which are orig-
inated by the Group are stated at amortized
cost less any amount written off and provisions
for impairment. An assessment is made at each
consolidated statement of financial position
date to determine whether there is objective
evidence that accounts or notes receivable may
be impaired. If such evidence exists, the esti-
mated recoverable amount of that asset is de-
termined and any impairment loss, based on
the net present value of future anticipated cash
flows discounted at original effective interest
rates, is included in the consolidated statement
of income.
The carrying amount of the asset is adjusted
through the use of an allowance account.
E. FINANCIAL INSTRUMENTS:
Financial assets and financial liabilities are
recognized in the Group’s consolidated state-
ment of financial position when the Group
becomes a party to the contractual provisions
When a financial instrument gives rise to a con-
tractual obligation on the part of the Group to
deliver cash or another financial asset or to ex-
change another financial instrument under
conditions that are potentially unfavorable, it is
classified as a financial liability. The instrument
is an equity instrument if, and only if, both con-
ditions (a) and (b) below are met:
(a) The instrument includes no contractual ob-
ligation to deliver cash or another financial
asset to another entity; or to exchange finan-
cial assets or financial liabilities with another
entity under conditions that are potentially
unfavorable to the issuer.
(b) If the instrument will or may be settled
from the Group’s own equity instruments; it
is a non-derivative that includes no contrac-
tual obligation for the Group to deliver a vari-
able number of its own equity instruments; or
a derivative that will be settled only by the
Group exchanging a fixed amount of cash or
another financial asset for a fixed number of
its own equity instruments.
Financial assets within the scope of IAS 39 are
classified as financial assets at fair value
through profit or loss, loans and receivables,
held-to-maturity investments or available-for-
sale financial assets, as appropriate. When fi-
nancial assets are recognized initially, they are
measured at fair value, plus, in the case of in-
vestments not at fair value through profit or
loss, directly attributable transaction costs.
The Group determines the classification of its
financial assets on initial recognition and,
where allowed and appropriate, re-evaluates
this designation at each financial year end.
All regular way purchases and sales of finan-
cial assets are recognised on the trade date,
which is the date that the Group commits to
purchase the asset. Regular way purchases or
sales are purchases or sales of financial assets
that require delivery of assets within the pe-
riod generally established by regulation or
convention in the marketplace.
Loans and Receivables:
Loans and receivables are non-derivative fi-
nancial assets with fixed or determinable pay-
ments that are not quoted in an active market.
After initial measurement, loans and receiv-
ables are carried at amortized cost using the
effective interest method less any allowance
for impairment. Gains and losses are recog-
nized in profit and or loss when the loans and
receivables are derecognized or impaired as
well as through the amortization process.
Fair Value:
The fair value of investments that are actively
traded in organized financial markets is deter-
mined by reference to quoted market bid prices
at the close of business on the consolidated
statement of financial position date. For invest-
ments where there is no active market, fair
value is determined using valuation techniques.
Such techniques include using recent arm’s
length market transactions, reference to the
current market value of another instrument,
which is substantially the same, discounted
cash flow analysis and other pricing models.
87
Derecognition:
Financial assets
A financial asset (or where applicable, a part
of a financial asset or part of a group of similar
financial assets) is derecognized where:
> The rights to receive cash flows from the
asset have expired, or
> The Group has transferred its rights to re-
ceive cash flows from the asset, or has as-
sumed an obligation to pay the received
cash flow in full without material delay to a
third party under a ‘pass through’ arrange-
ment, and
> Either (a) the Group has transferred sub-
stantially all the risks and rewards of the
asset, or (b) the Group has neither trans-
ferred nor retained substantially all the risks
and rewards of the asset, but has transferred
control of the asset.
When the Group has transferred its rights to re-
ceive cash flows from an asset and has neither
transferred nor retained substantially all the
risks and rewards of the asset nor transferred
control of the asset, the asset is derecognized to
the extent of the Group’s continuing involve-
ment in the asset. Continuing involvement that
takes the form of a guarantee over the trans-
ferred asset is measured at the lower of the orig-
inal carrying amount of the asset and the
maximum amount of consideration that the
Group could be required to repay.
When continuing involvement takes the form
of a written and/or purchased option (including
a cash settled option or similar provision) on the
transferred asset, the extent of the Group’s con-
tinuing involvement is the amount of the trans-
ferred asset that the Group may repurchase,
except that in the case of a written put option
(including a cash settled option or similar pro-
vision) on an asset measured at fair value, the
extent of the Group’s continuing involvement
is limited to the lower of the fair value of the
transferred asset and the option exercise price.
Financial liabilities
A financial liability is derecognized when the
obligation under the liability is discharged or
cancelled or expires. Where an existing finan-
cial liability is replaced by another from the
same lender on substantially different terms,
or the terms of an existing liability are sub-
stantially modified, such an exchange or mod-
ification is treated as a derecognition of the
original liability and the recognition of a new
liability and the difference in the respective
carrying amount is recognized in statement of
income.
88
Offsetting:
Financial assets and financial liabilities are
only offset and the net amount is reported in
the consolidated statement of financial posi-
tion when there is a legally enforceable right
to set-off the recognized amounts and the
Group intends to either settle on a net basis,
or to realize the asset and the liability simul-
taneously.
F. INVENTORY OF LAND AND
PROJECTS IN PROGRESS:
Inventory of land and projects in progress are
stated at the lower of cost and estimated net
realizable value. Costs include appraisal values
of real estate plots constituting the contribu-
tions in kind to capital (A shares), in addition
to capitalized costs. Capitalized costs comprise
the following:
- Project direct costs and overheads related to
the properties development, construction and
project management as a whole, as well as ac-
quisition, zoning, and eviction costs.
- Indirect costs, such as overheads, which
were partially allocated to inventory of land
and projects in progress.
G. INVESTMENT PROPERTIES:
Investment properties which represent prop-
erties held to earn rent and/or for capital ap-
preciation are measured initially at cost and
subsequent to initial recognition are stated at
their cost less accumulated depreciation and
any impairment in value.
Depreciation is computed using the straight-
line method over the estimated useful lives of
the properties, excluding the cost of land,
based on the following annual rates:
Buildings 2%
Furniture, fixtures, equipment
and other assets 4%-15%
The carrying amount includes the cost of replac-
ing part of an existing investment property at
the time that cost is incurred if the recognition
criteria are met. Other subsequent expenditure
is capitalized only when it increases future eco-
nomic benefits of the related item of investment
properties. All other expenditure is recognized
in the consolidated statement of income as the
expense is incurred.
Transfers are made to investment properties
when, and only when, there is a change in
use, evidenced by the end of owner occupa-
tion, commencement of an operating lease to
another party or completion of construction
or development.
Transfers are made from investment proper-
ties when, and only when, there is a change
in use, evidenced by commencement of owner
occupation or commencement of develop-
ment with a view to sell.
H. INTEREST IN JOINT VENTURES:
The Group has interests in joint ventures. A
joint venture is a contractual arrangement
whereby two or more parties undertake an
economic activity that is subject to joint con-
trol. The Group recognizes its share in joint
ventures by using the proportionate consoli-
dation method.
Investments in joint ventures are accounted
for in the standalone financial statements
using historical cost net of any impairment
loss. Impairment loss is recognized in the
statement of income.
The Group consolidates its share in assets, li-
abilities, revenues and expenses with related
captions in the consolidated financial state-
ments.
Financial statements of joint ventures are pre-
pared for the same fiscal year, using the same
accounting policies.
When the Group contributes or sells assets to
the joint venture, any portion of gain or loss
from the transaction is recognized based on
the substance of the transaction. When the
Group sells assets to the joint venture, the
Group does not recognize its share of the
profits from the transaction until the joint ven-
ture resells the assets to an independent party.
The joint venture is proportionately consolidated
until the date on which the Group ceases to
have joint control over the joint venture.
I. INVESTMENTS IN ASSOCIATES:
The Group’s investments in associates are ac-
counted for under the equity method of ac-
counting. These are entities over which the
Group exercises significant influence and which
are neither subsidiaries nor joint ventures.
Under the equity method of accounting, the
interest in the associate is carried in the con-
solidated statement of financial position at
cost as adjusted for post acquisition changes
in the Group’s share of the net assets of the
associate, less any impairment in the value of
the individual investment.
J. FIXED ASSETS:
Fixed assets are stated at cost net of accumu-
lated depreciation and any impairment in
value. Depreciation is computed using the
straight-line method over the estimated useful
lives of the assets based on the following an-
nual rates:
Buildings 2%
Marina 2%
Furniture and fixtures 9%
Freehold improvements 9%
Plant 10%
Machines and equipment 15%-20%
Expenditure incurred to replace a component
of an item of fixed assets that is accounted for
separately is capitalized and the carrying
amount of the component that is replaced is
written off. Other subsequent expenditure is
capitalized only when it increases future eco-
nomic benefits of the related item of fixed as-
sets. All other expenditure is recognized in the
consolidated statement of income as the ex-
pense is incurred.
K . I M PA I R M E N T O F T A N G I B L E A S S E T S :
At each consolidated statement of financial
position date, the carrying amounts of tangi-
ble assets (investment properties and fixed as-
sets) are reviewed to determine whether there
is any indication that these assets have suf-
fered an impairment loss. If any such indica-
tion exists, the recoverable amount of the asset
is estimated in order to determine the extent
of the impairment loss, if any.
Recoverable amount is defined as the higher
of:
- Fair value that reflects market conditions at
the balance sheet date less cost to sell, if any.
- Value in use assessed as the present value of
estimated future cash flows expected to arise
from the continuing use of the asset and
from its disposal at the end of its useful life,
only for applicable assets with cash genera-
tion units, as applicable.
Where an impairment loss subsequently re-
verses, the carrying amount of the asset is in-
creased to the revised estimate of its recoverable
amount, but so that the increased carrying
amount does not exceed the carrying amount
that would have been determined had no im-
pairment loss been recognized for the asset in
prior years. A reversal of an impairment loss is
recognized immediately in statement of income,
unless the relevant asset is carried at a revalued
amount, in which case the reversal of the im-
pairment loss is treated as a revaluation increase.
The impairment loss is recognized in the con-
solidated statement of income.
L. TREASURY SHARES:
Own equity instruments which are reacquired
(treasury shares) are deducted from equity. No
gain or loss is recognized in profit or loss on
the purchase, sale, issue or cancellation of the
Group’s own equity instruments.
Gains on sale of treasury shares are recorded
under a reserve account in equity. Losses in
excess of previously recognized gains are
charged to retained earnings.
M. REVENUE RECOGNITION:
Revenue on land and real estate sales trans-
actions is recognized on the basis of the full
accrual method as and when the following
conditions are met:
- A sale is consummated and contracts are
signed.
- The buyer’s initial (in principle over 25% of
sales price) and continuing investments are
adequate to demonstrate a commitment to
pay for the property.
- The Group’s receivable is not subject to fu-
ture subordination.
- The Group has transferred to the buyer the
usual risks and rewards of ownership in a
transaction that is in substance a sale and
the Group does not have a substantial con-
tinuing involvement with the property.
If any of the above conditions is not met, the ini-
tial payments received from buyers are recorded
under deferred revenues and other credit bal-
ances. Amounts are released to revenue as and
when the above conditions are fulfilled.
Financial assets (including treasury shares) re-
ceived in return for the sale of land and real
estate are valued at fair market value.
Rental income from operating leases is recog-
nized on a straight-line basis over the term of
the relevant lease.
Interest income is recognized as interest ac-
crues using the effective interest method, by
reference to the principal outstanding and the
applicable interest rate.
Revenue from rendering of services is recog-
nized when the outcome of the transaction
can be estimated reliably, by reference to the
stage of completion of the transaction at the
consolidated statement of financial position
date.
Revenue from hospitality consist mainly of
foods and beverage revenue, are recognized
when the related services are provided.
N. COST OF SALES:
Cost of properties sold is determined on the
basis of the built up area (BUA) - permitted
right to build in square meters - on the sold
plots based on the terms of the sales agree-
ments. The cost of one square meter of BUA is
arrived at by dividing, total estimated cost of the
land development project over total available
BUA after deduction of the BUA relating to re-
cuperated properties and those relating to the
religious and public administrations.
O. CA S H A N D CA S H E Q U I VA L E N T S :
For the purpose of the statement of cash
flows, cash and cash equivalents consists of
cash in hand, bank balances, and short-term
deposits with an original maturity of three
months or less, net of outstanding bank over-
drafts and short-term facilities with an original
maturity of three months or less.
P. B O R R O W I N G C O S T S :
Borrowing costs directly attributable to the ac-
quisition, construction or production of qual-
ifying assets, which are assets that necessarily
take a substantial period of time to be ready
for their intended use, are added to the cost of
those assets, until such time that the assets are
substantially ready for their intended use.
All other borrowing costs are reflected in the
consolidated statement of income in the pe-
riod in which they are incurred.
Q. BANK BORROWINGS:
Interest-bearing bank loans and overdrafts are
initially measured at the fair value of the con-
sideration received, less directly attributable
costs and are subsequently measured at amor-
tized cost, using the effective interest rate
method. Any difference between the proceeds
(net of transaction costs) and the settlement or
redemption of borrowings is recognized in
profit or loss over the term of the borrowings
through the amortization process, using the ef-
fective interest rate method.
R . T R A D E A N D O T H E R PA Y A B L E S :
Trade and other payables are initially measured
at fair value. Due to their short-term nature, the
carrying amount of trade and other payables
approximates their fair values as of the date of
the statement of financial position. Average
maturity dates of trade payables range between
30-90 days. Short duration payables with no
stated interest rate are measured at original in-
voice amount unless the effect of imputing in-
terest is significant.
89
S. TA X AT I O N :
Current Tax
Income tax is determined and provided for in
accordance with the Lebanese tax laws. In-
come tax expense is calculated based on the
taxable profit for the year. Taxable profit differs
from net profit as reported in the consolidated
statement of income because it excludes items
of income or expense that are taxable or de-
ductible in future years and it further excludes
items that are never taxable or deductible. The
Group’s liability for current tax is calculated
using tax rates enacted at the consolidated
statement of financial position date. Provision
for income tax is reflected in the consolidated
statement of financial position net of taxes pre-
viously settled in the form of withholding tax.
Tax on the holding subsidiary is provided for in
accordance with Article 6 of Legislative Decree
number 45 dated June 24, 1983 (as adjusted in
decree number 89 dated September 7, 1991). The
tax is capped at USD3,317 (LBP5million).
Tax on the offshore subsidiary is provided for
in accordance by Legislative Decree number
46 dated June 24, 1983 amended by Decree
number 85 dated September 7, 1991. The tax
is set at a flat rate of USD663 (LBP1million).
Rental income is subject to the built property
tax in accordance with the Lebanese tax law.
Deferred tax
Deferred income tax is provided, using the li-
ability method, on all temporary differences at
the consolidated statement of financial posi-
tion date between the tax bases of assets and
liabilities and their carrying amounts.
Deferred income tax assets and liabilities are
measured at the tax rates that are expected to
apply to the period when the asset is realized
or the liability is settled, based on laws that
have been enacted at the consolidated state-
ment of financial position date.
Deferred income tax assets are recognized for
all deductible temporary differences and carry-
forward of unused tax assets and unused tax
losses to the extent that it is probable that tax-
able profit will be available against which the
deductible temporary differences and the
carry-forward of unused tax assets and unused
tax losses can be utilized.
The carrying amount of deferred income tax
assets is reviewed at each consolidated state-
ment of financial position date and reduced to
the extent that it is no longer probable that
sufficient taxable profit will be available to
allow all or part of the deferred income tax
asset to be utilized.
90
Taxes payable on unrealized revenues are de- the Group’s share. The main activity of the (BREMS), with a 45% stake in the joint venture’s
Critical Accounting Judgments Interest in Joint Ventures
4 and Use of Estimates
5
ferred until the revenue is realized. joint venture is to develop, operate, manage, capital amounting to US$19,900. The main ac-
exploit and sell real estate properties in the tivity of the joint venture is to manage and mar-
Current tax and deferred tax relating to items Marina area in Beirut Central District. ket “Beirut Souks” which is owned by the
that are credited or charged directly to other Lebanese Company for the Development and
comprehensive income are recognized directly As per the terms of the agreement, on December Reconstruction of Beirut Central District s.a.l.
In the application of the accounting policies The Group has interest in joint ventures as fol-
in other comprehensive income. 31, 2005, the Group sold properties with an ag- On December 7, 2011, the board of directors of
described in Note 3 above, management is re- lows: gregate cost of US$10,100,000 from properties BREMS resolved to cease the operations of the
quired to make judgments, estimates and as-
Value added tax (VAT) held for development and sale, to the joint ven- company as of January 2012.
Revenues, expenses and assets are recognized
sumptions about the carrying amounts of (a) The Group entered into a joint venture ture for a total consideration of US$31,600,000.
assets and liabilities that are not readily ap- agreement on February 11, 2004, with Stow
net of the amount of VAT except: The other venturer contributed in cash an The Group’s share of the assets, liabilities, in-
parent from other sources. The estimates and Waterfront s.a.l. (Holding) to establish Beirut amount of US$31,600,000 to the joint venture. come and expenses of the jointly controlled
>
associated assumptions are based on historical Waterfront Development s.a.l. with a 50%
Where the VAT incurred on a purchase of as- entities at December 31, 2012 and 2011, in-
(b) The Group entered into a joint venture agree-
experience and other factors that are consid- stake in the joint venture’s total capital
sets or services is not recoverable from the cluded in the consolidated financial state-
ered to be relevant. Actual results may differ amounting to US$19,900. During the year
taxation authority, in which case the VAT is ment on December 23, 2005, with Aswaq Man- ments, are as follows:
from these estimates. 2006, the capital of the joint venture was in-
recognized as part of the cost of acquisition agement and Services L.L.C. to establish Beirut
of the asset or as part of the expense item as creased to US$12,819,900 without changing Real Estate Management and Services s.a.l.
The estimates and underlying assumptions are
applicable; and
reviewed on an ongoing basis. Revisions to ac-
>
counting estimates are recognized in the period
Receivables and payables that are stated
in which the estimate is revised if the revision
with the amount of VAT included.
affects only that period, or in the period of the
revision and future periods if the revision affects
The net amount of VAT recoverable from, or
both current and future periods.
payable to the taxation authority is included
as part of receivables or payables in the con-
The most significant estimate made by the DECEMBER 31, 2012 2011
solidated statement of financial position.
Group is the determination of the aggregate US$ US$
cost of the Beirut Central District Project.
T. P R OV I S I O N S :
ASSETS
I M PA I R M E N T O F A C C O U N T S
Provisions are recognized when the Group Cash and bank balances 1,894,468 1,467,201
A N D N O T E S R E C E I VA B L E
has a present obligation (legal or constructive) Prepayments and other debit balances 4,712,752 3,330,744
as a result of a past event, it is probable that Accounts and notes receivables, net 1,339,790 14,222
An estimate of the collectible amount of ac-
an outflow of resources embodying economic Inventory of land and projects in progress 40,712,633 46,225,752
counts and notes receivable is made when
benefits will be required to settle the obliga- Fixed assets, net 103,775 97,835
collection of the full amount is no longer
tion and a reliable estimate can be made of the Investment properties, net 20,376,677 -
69,140,095 51,135,754
probable. For individually significant amounts,
amount of the obligation.
this estimation is performed on an individual
LIABILITIES
basis. Amounts which are not individually sig-
The amount recognized as a provision is the best
nificant, but which are past due, are assessed Bank overdrafts and short term facilities 13,863,026 221,749
estimate of the consideration required to settle
collectively and a provision is set up according Accounts payable and other liabilities 11,770,050 9,098,683
the present obligation at the consolidated state-
to the length of time past due, based on his- Deferred revenue and other credit balances 9,236,529 2,716,288
ment of financial position date, taking into ac-
Loans from banks and financial institutions 19,377,613 20,095,747
54,247,218 32,132,467
torical recovery rates.
count the risks and uncertainties surrounding the
obligation. Where a provision is measured using
USEFUL LIVES OF FIXED ASSETS AND INCOME AND EXPENSES
the cash flows estimated to settle the present ob-
INVESTMENT PROPERTIES Revenues from rented properties 3,812,012 -
ligation, its carrying amount is the present value
of these cash flows. Revenues from consulting services - 103,090
The Group’s management determines the es- Charges on rented properties (2,490,467) -
timated useful lives of its fixed assets for calcu- General and administrative expenses (1,245,282) (1,258,731)
U. E M P L OY E E S ’ E N D - O F - S E RV I C E
lating depreciation. The estimate is determined Depreciation (31,913) (25,825)
BENEFITS:
after considering the expected usage of the as- Other expenses - (127,448)
sets or physical wear and tear. Management re- Other income 35,501 49,966
The Group provides end-of-service benefits to
views the residual value and useful lives Other taxes (140,592) (109,995)
its employees. The entitlement to these bene-
annually and future depreciation charge would Interest income (4,235) 141,259
fits is based upon the employees’ final salary
be adjusted where the management believes Interest expense (349,239) (15,871)
and length of service, subject to the comple-
the useful lives differ from previous estimates. Loss for the year before income tax (414,215) (1,243,555)
tion of a minimum service period. The ex-
Income tax - (38,556)
Loss for the year (414,215) (1,282,111)
pected costs of these benefits are accrued over
the period of employment.
91
 as follows: results of its business units separately for the The Group’s revenues, profits, total assets and total liabilities are segregated by geographical area as follows:
Operating Segment >

6
Real estate sales purpose of making decisions about resource
> Real estate rental allocation and performance assessment. Seg-
> Hospitality ment performance is evaluated based on op- LEBANON MIDDLE EAST EUROPE TOTAL
erating profit and loss and is measured US$ US$ US$ US$

For management purposes, the Group is or- No operating segments have been aggregated consistently with operating profit or loss in the
ganized into business units according to their 2012
Revenues 120,448,905 - - 120,448,905
to form the above reportable operating seg- consolidated financial statements.
operations and has three reportable segments
Profit for the year 14,267,320 3,262,717 - 17,530,037
ments. Management monitors the operating

Total assets 2,549,751,090 314,961,817 1,581,213 2,866,294,120

Total liabilities 956,951,236 - - 956,951,236
REAL ESTATE
2011
Revenues 303,546,745 - - 303,546,745
SALES AND REAL ESTATE

Profit for the year 154,830,375 3,967,997 - 158,798,372

RENDERED SERVICES RENTAL HOSPITALITY TOTAL
US$ US$ US$ US$
Total assets 2,463,850,270 317,731,762 2,583,099 2,784,165,131
2012 Total liabilities 848,208,855 - - 848,208,855
Total assets 2,348,663,056 495,747,195 21,883,869 2,866,294,120
Total liabilities 762,559,890 165,511,937 28,879,408 956,951,235

Cash and Bank

2011
Total assets 2,278,329,656 478,022,891 27,812,584 2,784,165,131
Total liabilities 676,735,879 145,498,986 25,973,990 848,208,855
7 Balances

REAL ESTATE
SALES AND REAL ESTATE DECEMBER 31, 2012 2011
RENDERED SERVICES RENTAL HOSPITALITY TOTAL US$ US$
US$ US$ US$ US$
Cash on hand 157,385 176,840
2012 Current accounts 27,390,085 19,307,100
Revenues 55,722,039 58,132,896 6,593,970 120,448,905 Short term deposits 135,859,346 154,157,060
Cost of revenues (6,276,928) (21,157,779) (18,292,194) (45,726,901) Checks for collection - 440,680
Gain on sale of investment properties - 4,376,528 - 4,376,528 163,406,816 174,081,680
Net revenues from operations 49,445,111 41,351,645 (11,698,224) 79,098,532 Pledged term deposits 57,000 57,000
Share results from associates 3,270,649 - (3,966) 3,266,683
General and administrative expenses (33,281,852) (3,914,741) (763,587) (37,960,180) Short term deposits mature between January March 2012). The average yield on the term year ended December 31, 2011).
Depreciation of fixed assets (5,445,988) - (2,714,430) (8,160,418) and March 2013 (December 31, 2011: Short deposits for the year ended December 31,
Provision for contingencies (7,986,410) - - (7,986,410) term deposits mature between January and 2012 was approximately 4.11% (4.16% for the
Other taxes (3,777,740) - (178,725) (3,956,465)
Other expenses, net (121,661) - (112,216) (233,877)

Prepayments and
Other income 543,785 - 43,871 587,656

8 Other Debit Balances

Interest income 29,040,850 - 36,616 29,077,466
Interest expense (26,558,524) - (938,294) (27,496,818)
Profit/(loss) before tax 5,128,220 37,436,904 (16,328,955) 26,236,169
Income tax expense (2,322,812) (6,383,320) - (8,706,132)
Profit/(loss) for the year 2,805,408 31,053,584 (16,328,955) 17,530,037
DECEMBER 31, 2012 2011
US$ US$

2011
Advance payments to contractors 15,583,684 17,161,217
Revenues 247,002,676 49,862,775 6,681,294 303,546,745 Advances to employees 3,749,425 2,714,195
Cost of revenues (45,246,516) (16,066,528) (9,896,404) (71,209,448) Accrued interest income (a) 16,629,583 11,583,120
Gain on sale of investment properties - 625,809 - 625,809 Prepaid expenses 7,705,805 6,677,383
Net revenues from operations 201,756,160 34,422,056 (3,215,110) 232,963,106 Deferred tax assets (b) 1,612,500 1,612,500
Share results from associates 3,967,997 - - 3,967,997 Due from related parties (c) 3,480,211 1,488,505
General and administrative expenses (36,519,310) (601,766) (1,075,066) (38,196,142) Other debit balances 6,867,640 6,421,933
Depreciation of fixed assets (5,124,270) - (1,297,803) (6,422,073) 55,628,848 47,658,853
(a) Accrued
Other taxes (2,703,534) - (171,009) (2,874,543) interest income consists of the following:
Other expenses (5,054,664) - (11,740) (5,066,404)
Other income 566,603 - 46,967 613,570 DECEMBER 31, 2012 2011
Interest income 24,642,878 - 44,133 24,687,011 US$ US$
Interest expense (20,988,686) - (93,279) (21,081,965)
Profit before tax 160,543,174 33,820,290 (5,772,907) 188,590,557 Interest on bank deposits 1,087,911 1,099,991
Income tax expense (24,691,842) (5,100,343) - (29,792,185) Interest on notes and accounts receivables 15,541,672 10,483,129
Profit for the year 135,851,332 28,719,947 (5,772,907) 158,798,372 16,629,583 11,583,120

92 93
 (a)
(b) This (c) Due from related parties consists of the fol-
caption represents deferred tax assets Land and land development works include the following cost items:
on unrealized profits from sales to a joint ven- lowing:
DECEMBER 31, 2012 2011
ture Note 5 (a).
US$ US$

DECEMBER 31, 2012 2011

US$ US$ Acquired properties (a.1) 967,201,064 967,201,064
Pre-acquisition costs (a.2) 9,412,802 9,412,802
Solidere International Limited 2,784,646 1,488,505 Infrastructure costs (a.3) 799,223,411 777,395,720
City Makers s.a.r.l 520,241 - Eviction costs (a.4) 260,242,988 260,242,988
Beirut Waterfront Development s.a.l. 55,324 - Capitalized costs (a.5) 79,147,542 69,553,153
BCD Cinema s.a.l. 120,000 - Cumulative costs 2,115,227,807 2,083,805,727
3,480,211 1,488,505 Less: Cost of land sold, net (953,984,812) (946,936,702)
Less: Cost of land transferred to real estate
The above balances are interest free. development projects (132,855,734) (132,855,734)
Less: Cost of infrastructure transferred to
real estate development projects (6,353,121) (6,353,121)
1,022,034,140 997,660,170
Accounts and

9 Notes Receivable, Net

a.1Acquired properties consist mainly of the
aggregate initial appraised value attributed
which was established in accordance with
Law No. 117/91). Acquired properties include
were recuperated by original owners and
properties appraised at US$133million were
to the plots included in the BCD area of the value of purchased and exchanged prop- not claimed for recuperation.
DECEMBER 31, 2012 2011
US$1,170,001,290 net of the recuperated erties as well.
a.2 Pre-acquisition costs include technical and
US$ US$
properties. The aggregate appraised value is
Notes receivable 487,366,725 494,877,861 determined in accordance with Decree No. Law No. 117/91 stated the requirements for master plan studies incurred during the set up
Accounts receivable 115,990,246 119,989,346 2236 (dated February 19, 1992 based on the property recuperation and exemption. In this period of the Group.
Receivables from tenants 40,071,945 33,393,731 decision of the Higher Appraisal Committee, respect properties appraised at US$255million
a.3 Infrastructure costs consists of the following:
Less: Unearned interest (79,899,551) (87,177,690)
Less: Provision for problematic receivables (451,320) (741,456)
Less: Provision for impairment on collectively DECEMBER 31, 2012 2011
assessed accounts receivable (9,000,000) (9,000,000) US$ US$

554,078,045 551,341,792
Sea front defense 295,279,683 288,886,655
The Group’s credit risk exposure is spread December 31, 2012 (as of December 31, 2011, Notes receivable, which resulted mainly from Work executed in the traditional BCD area 171,534,879 160,248,695
mainly over 44 counter-parties; 10 customers 48 counter-parties; 10 customers constitute sales carry the following maturities: Land reclamation and treatment 100,182,203 98,314,581
constitute 93% of the total exposure and 34 93% of the total exposure and 38 customers Electricity power station 42,753,906 42,270,889
customers constitute the remaining 7% as of constitute the remaining 7%). Borrowing costs (Note 30) 44,011,502 43,305,585
Other costs 145,461,238 144,369,315
DECEMBER 31, 2012 2011
799,223,411 777,395,720
US$ US$

a.4 Eviction costs represent the costs of relocat- ated properties appraised values collected from US$9.8million (US$8.2million for the year
Doubtful balances 617,272 617,272
ing previous settlers out of the BCD area which original owners other than religious and gov- ended December 31, 2011) (Note 26).
Overdue 48,101,552 31,212,527
were mainly paid through the Central Fund for ernmental recuperated properties.
(b)
2012 - 89,486,613
the Displaced (a public authority). This caption Real estate development projects include
a.5 Capitalized costs represent allocation of di-
2013 85,931,590 85,129,316
is stated net of US$22.2million as of December the following:
2014 101,852,297 83,170,219
31, 2012 (US$22.2million as of December 31, rect overheads. Costs capitalized during the
2015 and above 250,864,014 205,261,914
487,366,725 494,877,861
2011) representing a 10% charge on recuper- year ended December 31, 2012 amounted to

The average yield on accounts and notes re- Subsequent to the date of the statement of fi- whereby it securitized notes receivable with DECEMBER 31, 2012 2011
US$ US$
ceivable is mainly dependent on the Libor nancial position, the Company signed an an aggregate nominal value of US$185million
rate. agreement with a local financial institution relating to 4 customers.
Construction and rehabilitation of buildings 712,760,844 642,646,989
Cost of land 133,244,015 133,244,015
Cumulative costs 846,004,859 775,891,004
Inventory of Land and Less: Cost transferred to investment properties, net (545,254,302) (521,379,645)

10 Projects in Progress Cost transferred to fixed assets

Cost of real estate sold
(29,659,018)
(44,164,255)
226,927,284
(29,659,018)
(44,164,255)
180,688,086
DECEMBER 31, 2012 2011
US$ US$
During 2012, the Group transferred an ing the cost of land, building and other assets During 2012, the Group allocated interest ex-
Land and land development works, net (a) 1,022,034,140 997,660,170 amount of US$23,874,657 (US$9,548,449 dur- of the “Beirut Souks” and “Zaitunay Bay” proj- pense to real estate development project in
Real estate development projects, net (b) 226,927,284 180,688,086 ing 2011) to investment properties represent- ects (Note 11). the amount of US$2,535,020 (US$2,113,796
1,248,961,424 1,178,348,256 during 2011) (Note 30).

94 95
 Investment Investment in

11 Properties, Net
12 Associates

BALANCE AS AT BALANCE AS AT
DECEMBER 31, DISPOSALS DECEMBER 31, DECEMBER 31, 2012 2011
2011 ADDITIONS TRANSFERS AND SALES 2012 US$ US$
US$ US$ US$ US$ US$
Solidere International Limited (SI) 314,961,818 317,727,785
COST BCD Cinemas s.a.l. 4,034 -
Land 91,490,073 - - (512,575) 90,977,498 Other - 3,977
Buildings 359,132,751 1,661,001 19,806,590 (1,396,278) 379,204,064 314,965,852 317,731,762
Other assets 35,860,849 881,736 1,097,668 (3,000) 37,837,253
486,483,673 2,542,737 20,904,258 (1,911,853) 508,018,815 Details of the Group’s associate SI are as follows:

ACCUMULATED DEPRECIATION 2012 2011

Buildings 34,891,155 7,437,299 (251,472) (159,379) 41,917,603 COUNTRY OF OWNERSHIP GROUP’S SHARE GROUP’S SHARE

Other assets 6,963,358 2,159,954 (37,138) - 9,086,174 INCORPORATION INTEREST COST OF EQUITY COST OF EQUITY

41,854,513 9,597,253 (288,610) (159,379) 51,003,777

% US$ US$ US$ US$

Net Book Value 444,629,160 457,015,038

Solidere International
Limited (i) UAE 39.05 237,789,902 314,961,818 237,209,580 317,727,785
BCD Cinemas s.a.l. (ii) Lebanon 40.00 8,000 4,034 - -
237,797,902 314,965,852 237,209,580 317,727,785
BALANCE AS AT BALANCE AS AT
DECEMBER 31, DISPOSALS DECEMBER 31,
2010 ADDITIONS TRANSFERS AND SALES 2011
US$ US$ US$ US$ US$
Summarized financial information in respect
COST of the Group’s associates is set out below:
Land 92,450,011 - - (959,938) 91,490,073
Buildings 350,937,563 898,452 9,548,449 (2,251,713) 359,132,751 DECEMBER 31, 2012 2011
Other assets 34,676,699 1,161,197 43,320 (20,367) 35,860,849 US$ US$

478,064,273 2,059,649 9,591,769 (3,232,018) 486,483,673

Total assets 872,169,518 875,440,867
ACCUMULATED DEPRECIATION Total liabilities (9,725,177) (4,720,441)
Buildings 29,842,158 5,378,602 - (329,605) 34,891,155 Non-controlling interest (55,834,658) (55,559,716)
Other assets 5,244,500 1,738,059 - (19,201) 6,963,358 Net assets 806,609,683 815,160,710
35,086,658 7,116,661 - (348,806) 41,854,513 Group’s share of net assets 314,965,852 317,727,785
Net Book Value 442,977,615 444,629,160
Initial price of investment 237,797,902 237,209,580
Group’s share of results-Gain 3,266,683 3,967,997
Group’s share of comprehensive loss (175,182) (144,383)
Carrying amount of the investment 314,965,852 317,727,785
Investment properties include rented and Disposal of land, building and other assets re- Other disposals of other assets resulted in a
available for rent properties. These represent sulted in a gain of US$4,376,528 recorded loss of US$1,194 recorded under “Loss of

(i) During the first half of the year 2007, Solid-

“Beirut Souks”, a property leased out to the
Ministry of Foreign Affairs and Emigrants, for
use by an international agency, residential
complexes, an embassy complex, and other
restored buildings and“Zaitunay Bay” project.
During the year ended December 31, 2012, the
Group transferred US$23,874,657 from real
estate development projects to investment
properties (US$9,548,449 for the year ended
December 31, 2011) representing the cost al-
located to the “Beirut Souks” and “Zaitunay
Bay” projects (Note 10 (b) ).
During the year ended December 31, 2012, the
Group transferred a total net book value of
US$2,681,789 from investment properties to
fixed assets (US$43,320 from fixed assets to
investment properties for the year ended De-
cember 31, 2011) (Note 13).
under “Gain on sale and disposal of invest-
ment properties” in the consolidated state-
ment of income for the year ended December
31, 2012 (US$625,809 for the year ended De-
cember 31, 2011).
During the year ended December 31, 2011, the
Group lost the ownership of a property having
an aggregate net book value of US$1,693,234
for total proceeds of US$1,002,330 which re-
sulted in a loss of US$690,904 recorded under
“Loss of ownership of investment properties”
under“Other expenses”caption in the consol-
idated statement of income (Note 28). Fur-
thermore, the Group recorded a loss
representing the net rental revenue related to
the property from June 2008 to April 2011
amounting to US$583,121 recorded under
“Loss of ownership of investment properties”
under“Other expenses”caption in the consol-
idated statement of income (Note 28).
ownership of investment properties” under
The private placement memorandum and During 2009, the Group increased its direct
“Other expenses” (Note 28).
ere established Solidere International Hold- other signed agreements between Solidere ownership in Solidere International Limited
ings s.a.l. (SIH) which in turn established and SI stipulate that Solidere and Solidere to 38.98% by acquiring 86,900 shares for an
Depreciation for investment properties in the
Solidere International Limited (SI) in the Management Services s.a.l. will transfer to SI amount of US$6,997,000.
amount of US$9,597,253 for the year 2012
Dubai International Financial Center (DIFC) all the projects that they had outside the
(US$7,116,661 for the year 2011) is recorded
with an initial capital of US$50,000. The main Lebanese territories. In addition, Solidere will During 2012, the Group increased its percent-
under “Charges on rented properties” in the
activity of SI is to promote, invest in, develop, grant SI the right to use the Solidere brand age of ownership to 39.05% by acquiring
consolidated statement of income (Note 24).
market and manage, as well as provide con- name through a license agreement and a none 7,786 shares for an amount of US$580,322.
sulting services with respect to real estate compete right.
(ii) During 2012, the Group subscribed into the
The fair value of the investment properties is
projects outside the Beirut Central District
estimated by management at approximately
area of Lebanon. On June 7, 2007, the Group further subscribed capital of BCD Cinemas s.a.l. at a total cost of
US$1.25billion based on current market prices
into the capital of Solidere International Lim- US$8,000 representing a 40% equity stake in
(US$1.26billion as of December 31, 2011).
During the same year, SIH raised additional ited for an amount of US$3,000,060 represent- the associate’s capital of US$20,000.
There has been no valuation of these proper-
funds for SI through a private placement. ing a 0.4286% equity stake.
ties by an independent valuer.
As a result of the private placement SI’s share During 2008, the Group increased its direct
capital and share premium amounted to ownership in Solidere International Limited
US$700,050,000 out of which SIH settled to 38.18% by acquiring 66,849 shares for an
US$216million against an ownership percent- amount of US$10,784,850.
age of 37.19%.

96 97
 Fixed Assets, Net Bank Overdrafts

13 14 and Short Term

Facilities

Fixed assets are composed of the following: Bank overdrafts and short term facilities consist of the following:

BALANCE AS AT BALANCE AS AT DECEMBER 31, 2012 2011

DECEMBER 31, DISPOSALS DECEMBER 31, US$ US$
2011 ADDITIONS TRANSFERS AND SALES 2012
US$ US$ US$ US$ US$ Bank overdrafts 177,223,565 89,746,974
Short term facilities 469,662,871 430,302,226
COST 646,886,436 520,049,200
Land 5,722,047 - 450,191 - 6,172,238
Buildings 23,678,118 3,717,682 2,577,105 (1,140,258) 28,832,647 Short term facilities consist of the following:
Marina 7,866,624 - - - 7,866,624
Furniture and fixure 10,036,098 717,877 65 (33,264) 10,720,776 OUTSTANDING BALANCE
Freehold improvements 26,716,862 2,897,237 38,467 - 29,652,566 FACILITY MATURITY INTEREST DECEMBER 31,
Machines and equipment 36,130,572 1,164,756 6,862 (83,985) 37,218,205 AMOUNT DATE RATE COVENANTS 2012 2011

Advances on fixed assets 364,226 - - - 364,226 US$ % US$ US$

Work in progress - - (102,291) - (102,291)

110,514,547 8,497,552 2,970,399 (1,257,507) 120,724,991 100,000,000 August 4, 2015 4.05 (a) 109,658,838 109,256,980
75,000,000 August 3, 2013 5.00 (b) 74,999,646 74,999,638
ACCUMULATED DEPRECIATION 35,000,000 August 3, 2013 5.00 (b) 34,999,885 34,999,897
Buildings 3,232,651 2,504,808 251,472 (40,684) 5,948,247 100,000,000 October 11, 2013 4.50 99,999,477 99,999,957
Marina 861,913 159,955 - - 1,021,868 100,000,000 July 31, 2013 5.50 (c) 100,005,025 100,005,958
50,000,000 July 10, 2013 5.00 50,000,000 -
469,662,871 419,262,430
Furniture 3,414,708 247,261 17 (4,990) 3,656,996
Freehold improvements 4,701,801 884,902 30,259 - 5,616,962
Machines and equipment 27,986,846 4,363,492 6,862 (57,378) 32,299,822
40,197,919 8,160,418 288,610 (103,052) 48,543,895 (a) The covenants of the agreement stipulate (b) The
Net Book Value 70,316,628 72,181,096
covenants of the agreements stipulate US$5,915,816 and recorded under interest ex-
that the Group maintain a maximum debt to that the Group maintains a maximum debt to pense in the consolidated statement of in-
equity ratio and banks’ loans, overdrafts and equity ratio of 1:2 and a minimum equity bal- come (US$5,089,450 for the year ended
other facilities to equity ratio of 1:3 and 1:4 re- ance of US$1billion. December 31, 2011).
spectively.
BALANCE AS AT BALANCE AS AT (c)The covenant of the facility stipulates that Interest expense on short term facilities for the
DECEMBER 31, DISPOSALS DECEMBER 31,
Also, the covenants of the facility stipulate that the Group maintains a minimum equity bal- year ended December 31, 2012 amounted to
2010 ADDITIONS TRANSFERS AND SALES 2011
US$ US$ US$ US$ US$
the Group maintains a minimum of US$75mil- ance of US$1billion, a minimum equity to as- US$21,373,031 (US$18,339,449 for the year
lion in notes and accounts receivables and sets ratio of 40% and a maximum debt to ended December 31, 2011) and recorded under
COST
maintain a minimum of 750,000 square meters equity ratio of 50%. interest expense in the consolidated statement
Land 5,722,047 - - - 5,722,047 of built properties and US$1billion in net tan- of income.
Buildings 20,580,049 3,098,069 - - 23,678,118 gible assets free from any liens. Interest expense on bank overdrafts for the
Marina 7,866,624 - - - 7,866,624 year ended December 31, 2012 amounted to
Furniture and fixture 5,565,204 4,470,894 - - 10,036,098
Freehold improvements 12,685,396 7,770,200 6,261,266 - 26,716,862

Accounts Payable
Machines and equipment 33,969,107 2,161,465 - - 36,130,572
Advances on fixed assets
Work in progress
4,180,894
2,487,918
93,057,239
-
-
17,500,628
(3,816,668)
(2,487,918)
(43,320)
-
-
-
364,226
-
110,514,547
15 and Other Liabilities

ACCUMULATED DEPRECIATION: Accounts payable and other liabilities consist of the following:
Buildings 2,915,757 316,894 - - 3,232,651
Marina 704,456 157,457 - - 861,913 DECEMBER 31, 2012 2011
Furniture and fixture 2,845,147 569,561 - - 3,414,708 US$ US$
Freehold improvements 3,331,787 1,370,014 - - 4,701,801
Machines and equipment 23,978,699 4,008,147 - - 27,986,846 Accounts payable (a) 57,081,716 68,969,445
33,775,846 6,422,073 - - 40,197,919 Accrued charges and other credit balances (b) 18,615,340 18,820,774
Net Book Value 59,281,393 70,316,628 Taxes payable (c) 13,691,324 34,533,002
Provision for end-of-service indemnity and other charges (d) 15,154,077 13,608,683
Provision for previously recognized sales (e) 7,007,910 7,007,910
During the year ended December 31, 2012, the erties to fixed assets (US$43,320 from fixed as- The depreciation for the year ended Decem- Provision for contingences 7,986,410 -
Group transferred assets of total net book sets to investment properties for the year ber 31, 2012 and 2011 was charged to the con- Due to related parties (f) 211,123 482,155
value of US$2,681,789 from investment prop- ended December 31, 2011) (Note 11). solidated statement of income. Accrued interest payable 1,384,230 1,387,508
121,132,130 144,809,477

98 99
(a) Accounts
payable as of December 31, 2012
and 2011 include balances in the aggregate
amount of US$13.8million due to the
Lebanese Government in consideration of the (b) Accrued charges and other credit balances (e)During the year ended December 31, 2009, lating to a previously recognized sale where cer- (f)
Due to related parties consists of the fol-
exchange of assets agreement explained in consists of the following: the Group booked a provision of US$7,007,910 tain legal and regulatory conditions might lead lowing:
Note 32(f). to account for the effect of an expected loss re- to the cancellation of this sale agreement.

DECEMBER 31, 2012 2011

DECEMBER 31, 2012 2011 US$ US$
US$ US$
Beirut Real Estate Management and Services s.a.l. - 394,956
Deposits from tenants 3,080,220 3,101,497 Mr. Selim El Zyr 367 605
Accrued municipality expenses 3,326,425 3,326,425 Mr. Rami Ariss - 8,058
Other 12,208,695 12,392,852 City Markers s.a.r.l. 128,262 50,193
18,615,340 18,820,774 Loulyas Holding s.a.l. 82,494 28,343
211,123 482,155
(c) Taxes payable consist of the following: The above balances are interest free.

DECEMBER 31, 2012 2011

US$ US$

Dividends Payable
Accrued income tax
Additional tax assessment
Value added tax (VAT) payable
2,054,773
2,500,000
486,184
24,402,559
-
1,194,525
16 SETTLED/
DISTRIBUTED UP TO DECEMBER 31,
Taxes withheld 1,909,150 3,175,779
Property tax payable 6,734,013 5,752,935 GENERAL ASSEMBLY DIVIDEND DECEMBER 31, 2012 2011
DATE PER SHARE DECLARED 2012 PAYABLE PAYABLE
Other accrued taxes 7,204 7,204
13,691,324 34,533,002
US$ US$ US$ US$ US$

June 29, 1996 0.20 30,918,413 29,404,342 1,514,071 1,538,654

Income Tax
June 30, 1997 0.25 40,367,172 37,599,211 2,767,961 2,805,099
The applicable tax rate in Lebanon is 15% ac- The accrued income tax for the years 2012 and
June 29, 1998 0.25 39,351,753 36,013,256 3,338,497 3,377,746
cording to the Lebanese tax laws. 2011 was estimated as follows:
June 23, 2003 Stock dividend 19,625,550 19,606,235 19,315 19,315
June 12, 2006 0.6 94,831,106 90,083,339 4,747,767 4,976,531
2012 2011
June 22, 2007 1.00 155,093,702 147,164,618 7,929,084 10,478,193
US$ US$
July 15, 2008 1.00 155,090,832 139,598,339 15,492,493 18,101,474
July 13, 2009 1.15 176,479,956 161,658,694 14,821,262 15,711,241
Profit before tax 19,852,849 183,490,214
July 19, 2010 1.15 175,228,434 158,800,100 16,428,334 18,000,472
Less: Income of subsidiaries (1,490,585) 3,739,507
August 1, 2011 0.40 60,912,291 55,582,248 5,330,043 9,187,138
Add: Non-deductible provisions and charges 26,393,401 5,748,285
August 1, 2011 Stock dividend 85,987,850 85,987,850 - -
Less: Non-taxable revenues (29,270,255) (28,622,769)
July 30, 2012 0.25 39,316,239 32,928,872 6,387,367 -
Taxable income 15,485,410 164,355,237
July 30, 2012 Stock dividend 42,744,616 42,744,616 - -
1,115,947,914 1,037,171,720 78,776,194 84,195,863
Applicable tax rate 15% 15%
Accrued income tax 2,322,812 24,653,286
Add: Income tax provision for subsidiaries - 38,556
Total accrued income tax 2,322,812 24,691,842
Less: Tax on interest previously settled (268,039) (289,283) The General Assembly held on July 30, 2012 of approximately US$33million was settled up recorded cash dividends payable in the amount
Accrued income tax payable 2,054,773 24,402,559 decided to distribute dividends on the basis of to December 31, 2012. of US$53.6million net of distribution tax in the
US$0.25 per share and to distribute Class (B) amount of US$7.3million. An amount of ap-
shares from its treasury shares on the basis of The General Assembly held on August 1, 2011 proximately US$56million was settled up to
Additional tax assessment years 2008 to 2010 is still pending. Any addi- Value Added Tax (VAT) 1 share for every 50 shares for a total consid- decided to distribute dividends on the basis of December 31, 2012 (US$52million was settled
During 2012, the Company’s accounts for the tional tax liability is subject to the results of The VAT declarations for the years 2005 until eration of US$43million and issued the related US$0.4 per share and to distribute class (A) up to December 31, 2011).
years 2007 to 2010 were reviewed by the tax this review. 2012 are still subject to examination and final share certificates. Accordingly, the Group shares from its treasury shares on the basis of 1
authorities. The review for the year 2007 re- tax assessment by the tax authorities. Any ad- recorded cash dividends payable in the share for every 30 shares for a total considera- The outstanding balance of unpaid dividends
sulted in an additional tax liability in the The Company’s tax returns for the years 2011 ditional tax liability is subject to the results of amount of US$35million net of distribution tion of US$86million and issued the related relates mostly to unclaimed dividends and
amount of US$ 2,500,000 which was recorded and 2012 are still subject to examination and this review. tax in the amount of US$4million. An amount share certificates. Accordingly, the Group dividends pertaining to undelivered class (A)
under “Taxes, fees and stamps” in the consoli- final tax assessment by the tax authorities. Any shares.
dated statement of income. The outcome of additional tax liability is subject to the results (d) The movement of provision for end-of-ser-

Deferred Revenue
the review of the Company’s accounts for the of this review. vice indemnity and other charges is as follows:

2012
US$
2011
US$
17 and Other Credit
Balances

Balance at the beginning of the year 13,608,683 11,394,853 DECEMBER 31, 2012 2011
Additions 2,348,327 2,298,404 US$ US$

Settlements (106,989) (84,574)

Write-off (695,944) - Cash down payments and commitments on sale contracts 12,252,587 5,841,989
Balance at the end of the year 15,154,077 13,608,683 Deferred rental revenue and related deposits 28,583,218 23,216,579
40,835,805 29,058,568

100 101
Cash down payments and commitments on
sale contracts include balances aggregating to
approximately US$11million that relate to 5
sales contracts with an aggregate potential
gross sales value of US$52.76million as of De-
cember 31, 2012 (US$4.6million relating to 4
sale contract with an aggregate potential gross
sales value of US$46million as of December
31, 2011).
Deferred rental revenue and related deposits
represent down payments on lease and rental
agreements and reservation deposits for the
rental of real estate properties.
Loans from Banks and
18 Financial Institutions
On November 5, 2012 the Group signed a
loan agreement with a resident foreign bank
for an amount of US$12.5million. The two
years loan bears an interest of 3-months Libor
+ 2.5% not exceeding 4.5% p.a. Interest is
computed on a quarterly basis starting the
date of the loan withdrawal. The loan was fully
withdrawn during the year 2012. The repay-
ment of the loan will be through 2 equal an-
nual installments of US$6.25million each,
starting 1 year after the date of the first with-
drawal. The covenants of the loan stipulate
that the Company should maintain a maxi-
mum debt to equity ratio of 1:1 and a mini-
mum current ratio of 1.2:1. Interest for the
year 2012 in the amount of US$48,438 was
recorded under“Interest expense from banks”
in the consolidated statement of income.
On October 12, 2011 the Group signed a loan
agreement with a resident foreign bank for an
amount of US$50million. The two years loan
bears an interest of 3-months Libor + 2.5% not
exceeding 3.95% p.a. Interest is computed on a
quarterly basis starting the date of first with-
drawal. The loan was fully withdrawn during
the year 2011. The repayment of the loan will
be through 4 equal semi-annual installments
of US$12.5million each starting 6 months after
the date of the first withdrawal. The Company
settled an amount of US$25million during
2012. The covenants of the loan stipulate that
the Company should maintain a maximum
debt to equity ratio of 1:1 and a minimum cur-
rent ratio of 1.2:1. Interest for the year 2012 in
the amount of US$1,761,861 (US$394,999 for
the year 2011) was recorded under“Interest ex-
pense from banks” in the consolidated state-
ment of income.
During 2009, a joint venture entity of the
Group signed a subsidized loan agreement
with a local bank in the amount of
US$9,950,249. The loan principal was fully
withdrawn during 2011 of which 50% was re-
102
flected in the consolidated financial state-
ments (50% proportionate consolidation). The
term of the loan is seven years with 2 years
grace period, and bears an annual interest rate
of 3 months Libor + 2.5% before the subsidy,
not exceeding 6.5% per annum. Interest is
computed on a quarterly basis starting the
date of first withdrawal. Interest for the year
ended December 31, 2012 in the amount of
US$37thousand (US$41thousand for the year
2011) net of subsidized interest in the amount
of US$251thousand (US$281thousand for the
year 2011) of which US$9.7 thousand was
recorded under “Interest expense” in the con-
solidated statement of income and the re-
maining balance amounting to US$27.3 was
capitalized under inventory of land and proj-
ects in progress (Note 10). The repayment of
the entire loan will be through 19 equal quar-
terly installments of USD500,000 each and
one last installment of USD450,249 beginning
on December 31, 2011 and ending September
30, 2016. Settlements made during 2012
amounted to US$1.5million.
During 2009, a joint venture entity of the
Group signed another loan agreement with
the same local bank in the amount of
US$30,000,000. The loan was fully withdrawn
during 2011. The term of the loan is four years
with two years, grace period. The loan bears
an interest rate equivalent to cost of funds +
2%, not to exceed 3.9% annually. Interest is
computed on a quarterly basis starting the
date of the first withdrawal. Interest for the
year ended December 31, 2012 in the amount
of US$211thousand (US$240thousand for the
year 2011 capitalized under inventory of land
and projects in progress (Note 10) ) out of
which US$55thousand was recoded under
“Interest expense” in the consolidated state-
ment of income and the remaining balance in
the amount of US$156thousand was capital-
ized under inventory of land and projects in
progress (Note 10). The agreement was
amended during 2011 to decrease the loan
amount to US$15,000.000 to be repaid
through 4 equal semi-annual repayments of
US$3,750,000 each starting on December 31,
2011 and ending on June 30, 2013.
During 2011, a joint venture entity of the
Group signed another loan agreement with
the same local bank in the amount of
US$14.9million. The term of the loan is ten
years with a grace period starting on the date
of first withdrawal and ending on June 30,
2013. This loan bears an annual interest rate
of 2.7% per annum which may increase in
case of change in the compulsory reserves re-
quirements imposed by the Central Bank of
Lebanon. Interest is computed on a quarterly
basis at the end of each quarter and starting
the date of the first withdrawal. Interest for the
year ended December 31, 2011 in the amount
of US$158thousand was capitalized under in-
ventory of land and project in progress (Note
11). The repayment of the loan will be through
32 equal quarterly installments of USD466,418
each beginning on September 30, 2013.
The joint venture entity did not receive the ap-
proval of the Central Bank of Lebanon regard-
ing this loan and accordingly, it was considered
part of the overdraft facility as per the new loan
contract signed during 2012.
On March 16, 2012, a joint venture entity of the
Group signed a loan agreement with the same
local bank in the amount of US$15,000,000. The
term of the loan is two years. This loan bears an
interest rate equivalent to cost of funds + 1.2%
per annum. Interest is computed on quarterly
basis starting the date of the first withdrawal.
The loan will be paid in four semi-annual pay-
ment of US$750,000 starting June 30, 2013 and
ending June 30, 2015. The loan was fully with-
drawn during 2012. Interest for the year ended
December 31, 2012 amounted to US$166 thou-
sand of which US$43 thousand was recorded
under “Interest expense” in the consolidated
statement of income and the remaining balance
amounting to US$123 thousand was capitalized
under inventory of land and projects in progress
(Note 10). The joint venture entity granted the
bank a first degree mortgage over plots #1455
and #1456 in Mina El Hosn.
On September 21, 2012, a joint venture entity
of the Group signed another loan agreement
with the same local bank in the amount of
US$40,000,000. The term of the loan is seven
years and matures on December 31, 2019. The
loan bears an annual interest rate ranging
from 7% to 7.5% depending on the sales vol-
umes. Interest is computed on a semi-annual
basis starting the date of first withdrawal.
The loan will be repaid on March and Sep-
tember of each year starting September 30,
2012 as follows:
USD
2012 1,600,000
2013 4,000,000
2014 5,200,000
2015 5,600,000
2016 5,800,000
2017 6,400,000
2018 6,800,000
2019 4,600,000
40,000,000
Total withdrawals up to December 31, 2012
amounted to US$9,550,000. Settlements made
during 2012 amounted to US$1,600,000. In-
terest for the year ended December 31, 2012
amounted to US$73 thousand of which an
amount US$19 thousand was recorded under
“Interest expense” in the consolidated state-
ment of income and the remaining balance
amounting to US$54 thousand was capital-
ized under inventory of land and projects in
progress (Note 10).
During 2012, a wholly owned subsidiary of the
Group signed a loan agreement with a local
bank in the amount of US$2,839,492. The loan
principal was fully withdrawn during 2012. The
term of loan is five years. This loan bears an in-
terest rate of 4.64% per annum. Interest is com-
puted on a quarterly basis. The repayment of
loan will be through 19 equal quarterly install-
ment of US$140,000 each and one last install-
ment of US$179,497 beginning on January 1,
2013 and ending on September 30, 2017. Inter-
est expense for the year ended December 31,
2012 amounted to US$72,314 and was
recorded under “Interest expense” in the con-
solidated statement of income.
During 2012, a wholly owned subsidiary of the
Group signed a loan agreement with a local
bank in the amount of US$9,500,000. The loan
principal was fully withdrawn during 2012.
The term of loan is five years. This loan bears
an interest rate of 3 months LIBOR + 2.5% per
annum. Interest is computed on a quarterly
losses. The repayment of loan will be through
20 equal quarterly installments of US$475,000
each beginning on January 1, 2013 and ending
on September 30, 2017. Interest expense for
the year ended December 31, 2012 amounted
to US$574,415 and was recorded under“Inter-
est expense” in the consolidated statement of
income.
Non-Controlling
22 Interest
Non-controlling interest consists of the following
YEAR ENDED DECEMBER 31,
Issued capital
Accumulated losses
Loss for the year
Capital
19
Capital consists of 165,000,000 shares of
US$10 par value, authorized and fully paid
and divided in accordance with Law 117/91
into the following:
- Class “A”, amounting to 100,000,000 shares
represented contribution in kind of proper-
ties in the BCD, based on the resolutions of
the High Appraisal Committee. All Class A
shares were deemed to have been issued
and outstanding since the establishment of
the Group.
- Class “B”, amounting to 65,000,000 shares
represented capital subscription in cash and
are all issued and fully paid at the establish-
ment of the Group.
Class “A” and Class “B” shares have the same
rights and obligations.
As of December 31, 2012, the Company had
12,462,906 “A” shares listed on the London
Stock Exchange in the form of Global Depos-
itory Receipts (GDR) (13,557,687“A”shares as
of December 31, 2011).
Legal Reserve
20
In conformity with the Company’s articles of
incorporation and the Lebanese Code of
Commerce, 10 % of the annual net income is
required to be transferred to legal reserve until
this reserve equals one third of capital. This re-
serve is not available for dividend distribution.
Treasury Shares
21
This caption includes 4,846,204 shares class (A)
and (B) as of December 31, 2012 out of which
396,344 shares represent Global Depository
Receipts (GDR) (7,643,249 shares out of which
396,344 shares represent Global Depository
Receipts (GDR) as of December 31, 2011).
The treasury shares outstanding as of Decem-
ber 31, 2012 and 2011 were stated at the
weighted average cost.
According to its articles of incorporation, the
Group may purchase up to 10% of its share
capital without the existence of free reserves,
provided that it shall resell these shares within
a period not exceeding eighteen months.
As of December 31, 2012 and 2011, this cap-
tion includes 3,685,000 shares that were ac-
quired from sale of properties.
2012 2011
US$ US$
3,980 3,980
(317,956) (86,660)
(415,410) (231,296)
(729,386) (313,976)
103
 The Group reallocated salaries, benefits and (US$8.2million during the year ended Decem- charges on rented property during the year
Revenues from

23 Rendered Services
related charges and administrative expenses ber 31, 2011) (Note 10). ended December 31, 2012 (US$4,563,622 dur-
amounting to US$9.8million to construction The Group reallocated salaries, benefits and re- ing the year ended December 31, 2011).
cost during the year ended December 31, 2012 lated charges amounting to US$5,706,462 to

YEAR ENDED DECEMBER 31, 2012 2011

US$ US$

Interest Income
Services rendered to related parties (Note 31)
Services rendered to clients
Broadband network revenues
2,527,995
1,052,861
2,560,806
1,904,854
922,293
2,452,981
27
6,141,662 5,280,128
YEAR ENDED DECEMBER 31, 2012 2011
US$ US$

Charges on Rented Interest income from notes and accounts receivable 24,473,575 19,186,689

24 Properties Interest income from banks 4,603,891

29,077,466
5,500,322
24,687,011

YEAR ENDED DECEMBER 31, 2012 2011

US$ US$
Other Expenses

Depreciation expense (Note 11)

Property taxes
9,597,253
6,383,320
7,116,661
5,752,935
28
Manpower 4,654,208 3,563,243 YEAR ENDED DECEMBER 31, 2012 2011
Advertising 1,404,101 1,628,560 US$ US$

Electricity, maintenance and other related changes, net 5,502,217 3,105,472

27,541,099 21,166,871 Amicable settlements - 3,414,155
Loss of ownership of investment properties (Note 11) - 1,275,219
Other 233,877 377,030
233,877 5,066,404
Cost of Services

25 Rendered

During 2011, the Group settled an amount of

YEAR ENDED DECEMBER 31, 2012 2011
US$3.4million representing amicable settle-
US$ US$
ments as a goodwill gesture for the with-
drawal of claims concerning offers regarding
Cost of services rendered to related parties 2,527,995 1,927,253
the “Beirut Souks”.
Cost of services rendered to clients 1,090,421 763,421
Broad band network cost of services rendered 3,237,268 3,211,278
6,855,684 5,901,952

Basic/Diluted Earnings

General and
29 Per Share

26 Administrative Expenses
The computation of earnings per share is
based on net income for the period and the
YEAR ENDED DECEMBER 31, 2012 2011
weighted average number of outstanding class
US$ US$ (A) and (B) shares during each period net of
treasury shares held by the Group.
Salaries, benefits and related charges 22,470,944 22,881,088
Board of directors’ remuneration 285,417 275,000 The weighted average number of shares to
Professional services 1,644,557 2,419,556 compute basic and diluted earnings per share
Promotion and advertising 6,716,712 5,880,820 is 158,846,753 shares for the year 2012
Utilities, office, maintenance and other similar expenses 4,401,359 4,096,190 (154,395,737 shares for the year 2011).
Travel and accommodation 952,241 1,077,376
Other expenses 1,488,950 1,566,112
37,960,180 38,196,142

104 105
 Total benefits paid to executives and members (e) The Group is a defendant in various legal
Notes to the Cash Flow Related Party

30 Statement
31 Transactions
of the Board of Directors (including salary, proceedings and has litigations pending be-
bonus and others), included within “General fore the courts and faces several claims raised
and administrative expenses”, for the year by contractors. On the basis of advice received
ended December 31, 2011 amounted to from the external legal counsel and the
US$2,267,607 (US$3,481,100 for the year Group’s technical department, the directors
(a) Depreciation was applied as follows: These represent transactions with related par- ended December 31, 2010). are of the opinion that any negative outcome
ties, i.e. significant shareholders, directors and thereof, if any, would not have a material ad-
YEAR ENDED DECEMBER 31, 2012 2011 senior management of the Group, and com-
US$ US$
Income arising and expenses incurred from verse effect on the financial condition of the
panies of which they are principal owners and the Group’s transactions with other related Group.
entities controlled, jointly controlled or signif- parties, other than those disclosed in the fi-
Depreciation of fixed assets - Note 13 8,160,418 6,422,073
icantly influenced by such parties. Pricing nancial statements, do not form a significant (f)On June 7, 1997, the Group signed an ex-
Depreciation of investment properties - Note 11 & 24 9,597,253 7,116,661
Depreciation charge for the year 17,757,671 13,538,734
policies and terms of these transactions are portion of the Group’s operations. change agreement with the Lebanese Gov-
approved by the Group’s management. ernment. By virtue of this agreement, the
(b) Interest expense consists of the following: Group acquired additional built up area of
Cash and bank balances include US$
Commitments and
approximately 58,000m² and 556,340 Class A
55,384,003 as of December 31, 2012

YEAR ENDED DECEMBER 31,
Interest charged as period cost
Interest expense allocated to inventory of land
and projects in progress – Note 10
Total interest expense
(c) Non-cash transactions in operating and in-
vesting activities include transfers from inven-
tory of land and projects in progress to
investment properties in the amount of
US$23,874,657 for the year ended December
31, 2012 (US$9,548,449 for the year ended De-
cember 31, 2011).
(d) During the year ended December 31, 2012,
the Group transferred a total of net book value
of US$2,681,789 from investment properties
2012 2011
US$ US$
(US$59,908,080 as of December 31, 2011) rep-
resenting current bank accounts with a local
27,496,818 21,081,965 bank who is a significant but minority share-
holder of the Group.
3,240,937 3,271,593
30,737,755 24,353,558 Bank overdraft and short term facilities in-
clude US$115,340,045 as of December 31,
2012 (US$115,629,936 as of December 31,
2011) representing short term facilities with a
to fixed assets (US$43,320 from fixed assets to local bank who is a significant but minority
investment properties for the year ended De- shareholder of the Group.
cember 31, 2011).
Included under “Interest expense” in the con-
(e) Cash
and cash equivalents comprise of the solidated statement of income an amount of
following: US$5,151,785 for the year ended December
31, 2012 (US$5,577,288for the year ended De-
32 Contingencies
shares in exchange for approximately
15,000m² and the payment of US$38.7million
to restore governmental buildings. US$25mil-
lion has already been paid and accounted for
(a) An
and the balance of US$13.8million continues
agreement between the Company and
to be included under accounts payable. Ac-
the Council for Development and Reconstruc-
cording to the terms of the agreement, the
tion (“CDR”) was promulgated through De-
Group undertook to build a governmental
cree No. 5665 dated September 21, 1994, duly
building and to conclude ten finance leases
approved by the Council of Ministers. By
over seven years for certain buildings belong-
virtue of this agreement, the Company was
ing to the Lebanese Government. In 1999, the
granted 291,800m² of the reclaimed land sur-
government canceled the exchange and fi-
face (totaling 608,000 sqm) against the execu-
nance lease agreement. The implementation
tion by the Company of the sea landfill and
and the effect of cancellation is not yet deter-
infrastructure works.
mined and has not been reflected in the ac-
(b)
companying financial statements.
The total projected cost for completion of

(g)
cember 31, 2011) representing interest ex- the BCD project has been estimated by man-
In prior periods, the Group submitted to
YEAR ENDED DECEMBER 31, 2012 2011
pense on short term facilities with a local bank agement to be approximately US$2billion.
US$ US$ the Ministry of Culture and Higher Education
who is a significant but minority shareholder This amount is used as a base for the deter-
claims totaling US$17.7million representing
of the Group. mination of cost of sales.
Cash 157,385 617,520 compensation for delays that resulted from

(c) Commitments for contracted works not ex-

Current accounts 27,390,085 19,307,100
Certain directors are members of the boards
Short term deposits 135,916,347 152,803,252
of directors of banks with whom the Group
Bank overdrafts (177,223,565) (89,746,974)
(13,759,748) 82,980,898
has various banking activities.
General and administrative expenses include
legal fees in the amount of US$120,000 for the
year ended December 31, 2012 related to one
of the firm’s legal counselors who was a mem-
ber in the Company’s board of directors
(US$125,000 for the year ended December 31,
2011).
The Group incurred various expenses on behalf
of its related parties whose total net debit bal-
ances due amounted to US$3,269,088 as of De-
cember 31, 2012 (US$1,006,350 as of December
31, 2011) (Note 8 and 15).
During 2012, the Group charged Solidere In-
excavation works. These claims were not yet
approved nor confirmed by the concerned au-
ecuted as of December 31, 2012 amounted to
thorities nor recorded as receivables in the ac-
approximately US$142million (US144million
companying financial statements.
as of December 31, 2011).
(h) For the purpose of enhancing and improv-
(d)A lawsuit was raised in 1999 against the
ing land value in Zokak Al Blat area and to
Group by the “CDR” claiming reimbursement
settle the recuperation of a lot in that area, the
of an amount of LL5.4billion (US$3.6million)
Group signed in 2002 an agreement with the
plus interest. This balance represents pay-
Armenian Orthodox prelacy to demolish the
ments previously made by the “CDR” in con-
building on the recuperated lot and to transfer
nection with the appraisal of the properties in
corresponding building rights to another ad-
the BCD area and other tender documents.
jacent lot with minimum building rights of
No provision was set up against this claim
4,900m² against ceding of owners’ shares from
since, on the basis of the advice received from
both lots. Additionally, a built up area of
the Group’s legal advisor, the directors are of
5,335m² (US$2,700,000) remains as a contin-
the opinion that this claim is not based on
gent loss to the Group in case the prelacy de-
sound legal grounds. During 2011, the Group
cides to build this area within the next 10 years
paid an amount of LBP11.5billion (US$7.6mil-
following this agreement.
lion) in settlement of the above claims

(i) The Group has commitments and contingen-

ternational Limited, an associate, administra-
tive expenses amounting to US$2,062,072
(US$1,904,854 for the year 2011) (Note 23), in
addition to an amount of US$238,158
(US$29,459 for the year 2011) representing
payments on its behalf.
During 2012, the Group rendered services to
City Makers s.a.r.l., a related party, for an ag-
gregate amount of US$465,923 (Note 23).
recorded under infrastructure costs (Note 10a).
cies in the form of letters of guarantee in the
The Group has submitted to the “CDR” claims
amount of US$4,024,060 as at December 31,
aggregating US$13.6million representing
2012 (as at December 31, 2011 commitments
mainly change orders to infrastructure works in
and contingencies in the form of letters of guar-
the traditional BCD which were incurred by the
antee the amount of US$11,275,811).
Group on behalf of the Government. These
claims were neither approved nor confirmed by
the concerned party nor recorded as receivables
in the accompanying financial statements.

106 107
 The Group manages its capital structure and cumulative foreign currency transactions, cu- (b) Foreign Currency Risk: The Group’s liquid funds are placed with prime (d) Liquidity Risk:
Capital

33 Management
The primary objective of the Group’s capital
management is to ensure that it maintains a
strong credit rating and healthy capital ratios
in order to support its business and maximize
shareholder value.
DECEMBER 31,
Total consolidated liabilities
Less: Cash and bank balances
Total debt
makes adjustments to it in light of changes in
economic conditions. No changes were made
in the objectives, policies or processes during
the years ended December 31, 2012 and 2011.
The capital structure of the company consists
of debt and equity. Debt consists of total lia-
bilities less cash and bank balances. Equity
comprises capital, reserves, retained earnings,
mulative change in fair value and surplus on Currency risk is the risk that the value of a fi-
treasury shares’ activity less treasury shares. nancial instrument will fluctuate due to
changes in foreign exchange rates. The Group
The Group monitors capital on the basis of the is not materially exposed to currency risk since
debt-to-capital ratio (gearing ratio). The gear- the majority of its financial assets and liabili-
ing ratio as at December 31, 2012 and 2011 ties are denominated in U.S. Dollar or in cur-
was as follows: rencies pegged to the U.S. Dollar.
(c) Credit Risk:
The Group’s credit risk is primarily attributable
to its liquid funds receivables, other debit bal-
ances and investments in securities. The
amounts presented in the balance sheet are
stated at net realizable value, estimated by the
2012 2011 Group’s management based on prior experi-
US$ US$ ence and the current economic conditions.
956,951,236 848,208,855
(163,463,816) (174,138,680)
793,487,420 674,070,175
banks. Investments in securities are not covered
by collaterals. Other debit balances consist
mainly of amounts due from related parties.
The Group trades mostly with recognized, credit
worthy third parties and monitors receivable
balances and collection on an ongoing basis.
The Group’s credit risk exposure is spread over
44 counter-parties; 10 customers constitute
93% of the total exposure and 34 customers
constitute the remaining 7%. The maximum
exposure is the carrying amount as disclosed
in Note 9.
The Group’s revenues, profits, total assets and
total liabilities segregated by geographical area
is disclosed under Note 6.
Liquidity risk is the risk that an institution will
be unable to meet its net funding require-
ments. Liquidity risk can be caused by market
disruptions or credit downgrades, which may
cause certain sources of funding to dry up im-
mediately.
The Group’s objective is to maintain a balance
between continuity of funding and flexibility
through the use of bank overdrafts and bank
loans.
The table below summarizes the maturity profile
of the Group’s liabilities as of December 31,
based on contractual undiscounted liabilities:

Total equity 1,910,072,270 1,936,270,252

Gearing ratio 0.42 0.35
LESS THAN 3-12 1 TO 5
NO MATURITY 3 MONTHS MONTHS YEARS TOTAL
USD USD USD USD USD

DECEMBER 31, 2012

Bank overdrafts and short

term facilities - - 646,886,436 - 646,886,436
Accounts payable and other liabilities 980,490 31,339,614 6,693,986 30,544,057 69,558,147
purpose of these financial liabilities is to raise (a) Interest Rate Risk:
Risk
Dividends payable 78,776,194 - - - 78,776,194

34 Management
finance for the Group’s operations. The Group The Group’s exposure to the risk of changes Deferred revenues and other
has various assets such as accounts and notes in market interest rates relates primarily to the credit balances 40,835,805 - - - 40,835,805
receivable and cash and bank balances, which Group’s long-term debt obligations with Loans from banks and financial
arise directly from its operations. The main floating interest rates. The following table institutions - - - 69,320,670 69,320,670
risks arising from the Group’s financial instru- demonstrates the sensitivity to a reasonably Non-financial liabilities 51,573,983 - - - 51,573,983
172,166,472 31,339,614 653,580,422 99,864,727 956,951,235
The Group’s principal financial liabilities, ments are interest rate risk, liquidity risk, for- possible change in interest rates, with all other
other than derivatives, comprise bank loans eign currency risk and credit risk. The Board of conditions held constant, of the Group’s profit
and overdrafts, deferred revenues and other Directors reviews and approves policies for before tax. DECEMBER 31, 2011
credit balances, dividends payable and ac- managing each of these risks which are sum-
counts payable and other liabilities. The main marized below: Bank overdrafts and short
term facilities - - 520,049,200 - 520,049,200
Accounts payable and other liabilities 980,490 33,965,008 28,500,664 32,085,386 95,531,548
Dividends payable 84,195,863 - - - 84,195,863
INCREASE/ EFFECT ON Deferred revenues and other
DECREASE IN PROFIT BEFORE credit balances 29,058,568 - - - 29,058,568
BASIS POINTS TAX
Loans from banks and financial
USD
institutions - - 17,000,000 53,095,747 70,095,747
Non-financial liabilities 49,277,929 - - - 49,277,929
163,512,850 33,965,008 565,549,864 85,181,133 848,208,855
2012
US Dollars +20 589,920
US Dollars -15 442,440

2011
US Dollars +20 508,918
US Dollars -15 381,688
Fair Value of Financial Approval of Financial

35 Instruments
36 Statements

The Board of Directors approved the financial

The fair values of financial instruments are not statements for the year ended December 31,
materially different from their carrying values. 2012 on May 27, 2013

108 109
COLOPHON
Design, Editing and Production
Multidisciplinary Design Department

Photography Archive
Communications and Public Relations Division

Photography
Mosbah Assi

Prewar Photography
Pierre Madendjian

Prepress
Leogravure s.a.l.

Printing
Anis Commercial Printing Press s.a.l.

Binding
Fouad Baayno Book Bindery s.a.r.l.
Solidere Annual Report 2012:
The Chronicle

Copyright © 2013 Solidere

All rights reserved. No part of this publication can

be reproduced or transmitted in any form or by
any means, whether by photocopying, recording
or facsimile machine or otherwise howsoever
without prior written permission from Solidere.

Printed in Lebanon

Auditors Legal Counsel Solidere

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F 00961 1 369 663
T H E C H R O N I C L E
13 While the develop- 10 Hospitality ventures
ment strategy fo- come to complement
cuses on revenue- and support real
generating and added- estate development
value ventures to com- and enhance property
plete the Traditional City value. Hotels, cafes,
Center, the future devel- and restaurants blossom
opment frontier is the alongside office and res-
Waterfront District, with idential neighborhoods,
gateway projects set to promoting the city cen-
bridge the transition from ter as a welcoming and
historic to new. friendly, mixed-use space.
12 After Saifi, Wadi 09 Beirut Souks, a flag-
Abou Jamil is taking ship retail project,
shape as a new opens its doors.
calm, urban, residential This signature shopping,
neighborhood, while the hospitality, entertain-
construction of several ment, and cultural meet-
high-rise and large-scale ing point boosts the
developments are economic vitality and
launched in the Hotel social vibrancy of the city
District, Serail Corridor, center. The expansive site
and Saifi, all evolving to is a prime example of
complete the Traditional how layers of the city can
City Center cityscape. be incorporated into a
contemporary design.
11 Zaitunay Bay inau-
gurates its quayside 08 With the Conserva-
restaurant strip and tion Area’s urban
welcomes more than fabric almost com-
3,000 visitors per day in plete and the remaining
the first six months. At parts of the Traditional
the other end of town, City Center more than
the newly landscaped halfway developed, a cul-
Uruguay Street vitalizes tural strategy is imple-
nightlife activity in the mented to promote
Conservation Area, where culture, arts, and heritage
selected buildings are il- as tremendous resources
luminated in the for the local and interna-
nightscape through an tional communities.
image projection system.
07 With the completion
of land reclamation
and the visible
demarcation of the new
Waterfront District, along
with a continuous rise in
developers’ and investors’
interest in real estate
development, requests
come in to emulate the
success of Beirut city
center’s regeneration
enterprise in other parts
of the world.
06 In preparation for
the development
of the Waterfront
District – the reclaimed
expansion of the tradi-
tional city center – Beirut
is promoted as an inter-
national corporate busi-
ness center. Further
detailed urban and traffic
studies are carried out,
resulting in amendments
to the Master Plan.
05 The seafront Beirut
Marina is fully oper-
ational, berthing a
large number of vessels
on annual and seasonal
bases. The planning and
construction of several
real estate projects rush
forward, especially in
Wadi Abou Jamil, the
Hotel District, and the
Serail Corridor.
04 An international
urban design com-
petition solicits new
visions for Martyrs’ Square
and its surroundings.
The objective is to open
the axis toward the sea
with respect to the urban
grid and reposition the
square as a national
meeting point.
03 In establishing
the city center as a
culture and leisure
destination, a strategic
approach is taken to
integrate archeological
finds within the urban
fabric. Meanwhile, a
Quartier des Arts evolves
against the backdrop
of reconstructed and
restored traditional
buildings in Saifi Village.
02 Focusing on real
estate develop-
ments that attract
tenants and residents to
the city center, and fol-
lowing the positive
response to Saifi Village,
the impetus to invest in
other residential devel-
opments increases. This
trend also underlines the
importance of full-time
property maintenance
and operations services,
which begin to be offered
to third-party developers.
01 As businesses,
commercial outlets,
and landscaped
open spaces multiply,
a number of vacant lots
provide temporary park-
ing spaces to accommo-
date the mobility of the
growing number of ten-
ants and visitors, in
anticiplation of the
completion of under-
ground parking facilities
prescribed in the city cen-
ter’s Master Plan.
00 With archeological
documentation and
evaluation in full
swing, and following
extensive findings related
to the Cardo Maximus, a
large site between several
places of worship is dedi-
cated to be a landscaped
public space as the
Hadiqat As-Samah (Gar-
den of Forgiveness).
99 The city center is
pulsing with life.
Landmark buildings
are being restored and
cafes and restaurants are
multiplying. Businesses
and institutions relocating
to the area are drawn by
the amenities and serv-
ices such as the state-of-
the-art communication
network, security, and
maintenance.
Solidere Annual Report 2012:
an account of facts and events in the reconstruction
and development of beirut city center
98 All infrastructure 94 Comprehensive
works in the Tradi- urban planning
tional City Center stresses the topog-
are complete including raphy of Beirut city center
the expansion of the and ensures a connection
Ring Road and the cre- between the project and
ation of primary east– its surrounding areas,
west and north–south accommodating a broad,
avenues, which organize sustainable, flexible
accessibility and con- land-use mix.
serve air and view corri-
dors. 91 Beirut’s postwar
urban recovery is to
97 Restoration is car- be directed through
ried out based on concerted private sector
clear urban design, investment into a care-
technical guidelines, and fully constructed institu-
architectural briefs, pre- tional framework,
serving facades and regulated by government
adapting interiors to the decree. It is set to become
needs of contemporary one of the largest inner-
life and business. Mean- city and waterfront
while, following a fast- renewal projects in the
track approach, the first world.
major new development
reaches completion.
96 Beirut city center
becomes a large
archeological site,
with excavations uncov-
ering major discoveries
dating back to several
past civilizations. These
excavations are carried
out following a UNESCO
protocol specifically
devised for the area in
coordination with a
number of agencies and
teams of experts from
several different countries.
95 Informed by natu-
ral boundaries and
landforms, street
patterns, visual corri-
dors, past neighborhood
structures, and preserved
fabrics, the city center is
envisioned as a cluster of
sectors, each with its own
detailed master plan.
12
A series of photographs documenting the reconstruction
and development of Beirut city center

The photo book documents the regeneration of Beirut city

center over twenty years. It is a testimony to the resurgence
of the Lebanese capital, a precious archive of urban history.
While revenue-generating and added-
value ventures come to complete the
Traditional City Center, the future
development frontier is the Waterfront
District, with gateway projects set to
bridge the transition from historic to new.

13
04 — 05

13
The yacht club structure seems to emerge naturally
out of the land and transcends the boundary be-
tween city and sea. The project exemplifies the rich-
ness of the urban shoreline.
06 — 07

13
Zaitunay Bay’s rich culinary scene consists of 17
restaurants and cafes, offering a new entertainment
scene and creating a number of employment oppor-
tunities. Retail outlets, a water sport center, and an
art workshop complement the food experience and
turn the promenade into a family-friendly place
08 — 09

13
In its twelfth season, Beirut Marina provided moor-
ing for over 250 boats. The port’s total berth capacity
currently stands at 222 boats with a size of 5 to 65 m,
with 60 percent of the mooring area reserved for
boats over 25 m in length.
10 — 11

13
The Corniche promenade provides a natural exten-
sion to the existing Beirut Corniche and encourages
public recreation and leisure activities.
12 — 13

13
To date, temporary uses on the northeastern part
of the Waterfront District include the Beirut Interna-
tional Exhibition and Leisure Center (BIEL), Beirut
Exhibition Center, and a walking, jogging, and cy-
cling trail. KidzMondo, an edutainment center for
children, opened recently.
14 — 15

13
In the Hotel District, 3 Beirut, Damac Tower, and
Beirut Terraces are among several developers’ projects
under construction.
16 — 17

13
The Cinema and Entertainment Complex will soon
open in the northern part of Beirut Souks. The vol-
ume of its outer skin is composed of four metal rib-
bons that generate a dynamic sculptural form.
18 — 19

13
With its contemporary design and semi-open charac-
ter, Beirut Souks are an architectural marvel that re-
define and revitalize the traditional oriental bazaar.
Situated at the city’s core, they serve as a meeting
point that merges the capital’s many different parts
into one organic whole.
20 — 21

13
Beirut Souks (left) and the restored facades of pre-
served buildings (right) are an example of the harmo-
nious combination of modernity with historicity on
Fakhry Bey Street.
22 — 23

13
Martyrs’ Square is planned as a sequence of spaces
that move from the city to the sea. It starts at the
southern end of the square and moves north past the
famous Martyrs’ Monument and northward through
the archeological site – the Petit Serail and the
Canaanite Tell – to the water.
24 — 25

13
The District //S project is planned as a 16-building,
open-gated, pedestrian-friendly community that
draws people to its outdoor piazzas, terraces, and ar-
caded retail stretch through meandering alleyways.
The project will provide a northern extension to Saifi
Village, following the same design guidelines but in a
contemporary architectural expression.
26 — 27

13
The Gebran Tueni Memorial (right) faces the Samir
Kassir Square (right) on Weygand Street, where two
large ficus trees shade a water feature.
28 — 29

13
On Uruguay Street a U-shaped pedestrian area sur-
rounding a restored building is dedicated to open-air
seating and pedestrian activity as extensions of the
ground-level commercial spaces leased to pubs and
restaurants. Uruguay Street and the plaza have be-
come a hub of after-work activity and nightlife.
30 — 31

13
With the recovery of the Conservation Area and Beirut
Souks, the city center is reaffirming its role as the
focal point of economic, social, and cultural activities.
32 — 33

13
The Rafic Hariri Sculptural Garden facing the Na-
tional Evangelical Church, with a life-size sculpture
of the late Prime Minister, is officially named Na-
tional Unity Square.
34 — 35

13
The near-completed fabric of the Conservation Area
showcases streetwall control and alignment on main
street and boulevard frontages, with street level dedi-
cated to retail units.
2012 Completed and Ongoing Developments

Wadi Abou Jamil takes shape as a new

calm, urban, hillside neighborhood,
while the construction of several high-
rise and large-scale developments are
launched in the Hotel District, Serail
Corridor, and Saifi, all evolving to com-
plete the Traditional City Center
cityscape.

12
38 — 39

12
Zaitunay Bay inaugurates its quayside restaurant strip
and welcomes more than 3,000 visitors per day in the
first six months after opening while the yacht club is
planned to open its doors in 2013.
40 — 41

12
New developments are initiated in the Martyrs’
Square Axis, including Beirut Gardens, Tower Plus
One and Two, and Beb Beirut.
42 — 43

12
Saifi Village reinterprets traditional architectural fea-
tures. Colorful facades with triple arches, decorative
cornices and balconies, red-tiled pitched roofs, court-
yards, paths, and walkways stay faithful to the char-
acter of Saifi and add to the charm of the
neighborhood.
44 — 45

12
In Wadi Abou Jamil, several developments reach
completion, some are in their finishing stages, and
others are just commencing execution. Together they
give shape to the hillside urban neighborhood.
2011 Completed and Ongoing Developments

Zaitunay Bay inaugurates its quay-

side restaurant strip and welcomes
more than 3,000 visitors per day in six
months. At the other end of town,
the newly landscaped Uruguay Street
becomes another hub of nightlife ac-
tivity in the Conservation Area,
where selected buildings are illumi-
nated in the night-scape through an
image projection system.

11
48 — 49

11
Zaitunay Bay’s yacht club, with a total of 14,000 sq m
of floor space, nears completion. It consists of four
stories and three basements, accommodating com-
mercial space at ground level, 53 serviced and fur-
nished apartments, and a yacht club on upper levels.
50 — 51

11
Facing the Wadi Abou Jamil (right) upcoming resi-
dential district is the Hotel District, where many of
the previously available land plots are now under
construction or planning by developers for a variety
of land uses.
52 — 53

11
The Maghen Abraham Synagogue joins 17 other
places of worship – mosques, churches, and shrines –
that have been restored to exhibit their architectural
beauty and historical significance.
54 — 55

11
The Jewellery Souk is inaugurated. Two-floor pavil-
ions are linked by a network of charming passages
and squares. Shops are tightly packed along shaded
lanes with glass shop fronts that are reminiscent of
the old gold souk.
2010 Completed and Ongoing Developments

Hospitality ventures come to comple-

ment and support real estate develop-
ment and enhance property value.
Hotels, cafes, and restaurants blossom
alongside office and residential
neighborhoods, promoting the city
center as a welcoming and friendly,
mixed-use space.

10
58 — 59

10
Moving toward developing the reclaimed land, an
agreement is signed for the detailed design of under-
ground infrastructure and road asphalting, street fur-
niture, and other hardscaping in the Waterfront
District. A study on multimodal transportation re-
quirements for the district is undertaken to deliver
an area-wide transportation strategy.
60 — 61

10
Following the commencement of business for several
food and beverage outlets on the famed Ajami Square,
as well as numerous openings for world-famous
boutiques, Beirut Souks Core celebrates its official
inauguration with four days of spectacular perform-
ances and events. The Souks Core reaches near maxi-
mum tenancy, and the newly opened Jewelry Souk is
more than 50 percent occupied.
62 — 63

10
Amir Bachir Street with the landmark Lazarieh Com-
mercial Center (right) facing the pedestrian Bechara
Al Mouhandess Street, created along restaurants and
cafes to form a promenade overlooking Hadiqat As-
Samah (Garden of Forgiveness).
2009 Completed and Ongoing Developments

Beirut Souks, a flagship project, opens

its doors. This signature shopping, hos-
pitality, entertainment, and cultural
meeting point enhances the economic
vitality and social vibrancy of the city
center. The expansive site is a prime
example of how historical layers of the
city can be incorporated into a contem-
porary design.

09
66 — 67

09
The real estate development of the Waterfront Dis-
trict, now fully reclaimed, is planned to reach an ag-
gregate 1.7 million sq m. Permanent development is
set to start around the periphery of the street grid
while the central blocks will be developed gradually.
68 — 69

09
Designed as a rectangle with a landscaped open
atrium, the UN House (right) represents a south-
eastern “gateway” into the city center.
70 — 71

09
Wadi Abou Jamil is witnessing a wave of construction
activity on lots for which designs were commissioned
and then sold to third parties along with their respec-
tive residential concept proposals.
72 — 73

09
Storefront design specifications and guidelines are
introduced to provide tenants with clear direction for
interior construction works, leading to harmony and
consistency.
2008 Completed and Ongoing Developments

With the Conservation Area’s urban

fabric almost complete and the
remaining parts of the Traditional
City Center more than halfway
developed, a strategy is implemented
to preserve, create, and promote cul-
ture, arts, and heritage as tremendous
resources for the local and interna-
tional communities.

08
76 — 77

08
Serail Corridor and Hotel District from left to right:
24 Avenue du Parc, Park View, the Four Seasons Hotel,
Marina Tower, Beirut Tower, Platinum Tower, and
Monroe Hotel.
78 — 79

08
A new prayer hall on the left, topped by a small dome,
creates a virtual portal to Beirut Souks by mirroring
the form and scale of the Mamluk Zawiyat Ibn Arraq
Shrine on the right.
80 — 81

08
Olivier Vidal (France) is commissioned to design the
Bab Idriss Square (near right) and incorporate sculp-
tures by Xavier Corbero (Spain) evoking figures on
their way to the Hippodrome. The site stands on the
street that leads to the remains of the Roman race-
course gates.
82 — 83

08
Early modern buildings on Riad El Solh Street have
served as headquarters for financial institutions since
the mid-twentieth century.
2007 Completed and Ongoing Developments

Land reclamation is complete and

the demarcation of the new Water-
front District is visible. Among a
continuous rise in interest by third
parties in land for real estate devel-
opment, requests come in to emulate
the success of Beirut city center’s
regeneration program in other parts
of the world.

07
86 — 87

07
All land reclamation, including excavations, process-
ing of the materials, and backfilling, reaches comple-
tion, including the monitoring the generation of
landfill gas from backfilled materials through bore-
holes. The new Waterfront District is ready for infra-
structure works to prepare the land for future
development.
88 — 89

07
The integration of heritage and modernity is evident
as one approaches the main Beirut Souks entrance at
Imam Ouzai Square.
2006 Completed and Ongoing Developments

In preparation for the development of

the Waterfront District, Beirut city center
is promoted as an international corporate
business center. Further detailed urban
and traffic studies are carried out, result-
ing in amendments to the master plan.

06
92 — 93

06
The construction of the south part of Beirut Souks
(center) is progressing rapidly. Internally, it retains
the ancient street grid and is composed of a series
of structures creating urban spaces in an intricate
three-dimensional network fully integrated with
the city fabric.
94 — 95

06
With several residential, office, and hotel high-rise
developments under construction across from Beirut
Marina, the skyline of the Hotel District is gradually
changing.
2005 Completed and Ongoing Developments

In its fourth season, Beirut Marina

becomes fully operational, berthing a
large number of vessels on annual and
seasonal bases. The planning and con-
struction of several real estate projects
rush forward, especially in Wadi Abou
Jamil, the Hotel District, and the Serail
Corridor.

05
98 — 99

05
Construction of the Beirut Souks south part (Souks
Core and Jewelry Souk) advances. With the help of
professional advisors, a specific tenant-mix approach
is being developed to strategically place exclusive
concept and stand-alone boutiques and restaurants
among flagship and other traffic-generating stores.
100 — 101

05
The Conservation Area is almost complete with a few
developments still underway. These include the Bank
of Kuwait and the Arab World (Fenicia Bank), across
from the Municipality building on Foch Street and
the Radium office building.
102 — 103

05
Inspired by the Blue Mosque in Istanbul, the nearly
complete Mohamad Al Amin Mosque takes on a
deep, national significance when Prime Minister
Rafic Hariri is laid to rest there following his
assassination.
2004 Completed and Ongoing Developments

An international urban design competi-

tion solicits new visions for the Martyrs’
Square Axis and its surroundings.
The objective is to open the axis toward
the sea and reposition the square as a
national meeting point.

04
106 — 107

04
In the Hotel District, further urban design study is
undertaken to allow additional height to some tow-
ers. On completion and approval of a sector plan
amendment, design and building permit procedures
are registered for a number of large projects.
108 — 109

04
The Martyrs’ Square Grand Axis of Beirut interna-
tional urban design ideas competition is organized to
solicit a new vision for this prime public space and its
surrounding development, now open to the sea in its
extention from the Damascus Road gateway to the
Beirut Port’s first basin.
2003 Completed and Ongoing Developments

In establishing the city center as a

culture and leisure destination, a strate-
gic approach is taken to integrate
archeological finds within the urban
fabric. At the same time, a Quartier des
Arts evolves against the backdrop of
reconstructed and restored traditional
buildings in Saifi Village.

03
112 — 113

03
A highly positive response to Saifi Village provides
the impetus to further invest in residential develop-
ments and reinforce urban integration. The design
and implementation of clusters of various sizes for
land plots in Wadi Abou Jamil is commissioned, in-
volving both restoration and infill.
114 — 115

03
The peaceful residential ambience in Saifi Village de-
rives from a quiet environment and carefully de-
signed and landscaped public realm. The success of
the development is apparent as it is completely sold
or leased.
116 — 117

03
Prime Minister Rafic Hariri launches the construction
of a grand mosque at the intersection of Martyrs’
Square Axis and Amir Bachir Street, adjacent to the
restored St. George Maronite Cathedral and the
planned Hadiqat As Samah (Garden of Forgiveness).
118 — 119

03
The pedestrianized Nejmeh Square with its restored
clock tower and radial cobblestone streets gradually
fills with cafes and restaurants and attracts visitors in
search of outdoor recreational spaces.
2002 Completed and Ongoing Developments

Focusing on real estate developments

that attract tenants and residents to the
city center, and following the positive
response to Saifi Village, the impetus to
invest in other residential developments
increases. This trend also underlines
the importance of full-time property
operation and maintenance services,
which begin to be offered to third-party
developers.

02
122 — 123

02
Developments take shape in the Serail Corridor adja-
cent to the Beirut Souks, such as the Medgulf and
Semiramis developments, while lots along the main
Francois El Hajj Street (right) are still bare of con-
struction activity.
124 — 125

02
Further sector planning for the sloping Wadi Abou
Jamil sector contrives the development of a residen-
tial neighborhood with a mix of preserved and new
townhouses, low-rise apartment buildings, schools,
shops, and open spaces. Height controls are imposed
on new developments to preserve view corridors.
126 — 127

02
The number of temporary parking facilities increases
to provide 3,000 spaces servicing about 6,000 cus-
tomers per day.
2001 Completed and Ongoing Developments

As businesses, commercial outlets, and

landscaped open spaces multiply, an
increasing number of vacant lots provide
temporary parking spaces for the grow-
ing number of tenants and visitors,
awaiting the completion of underground
parking facilities prescribed in the city
center’s Master Plan.

01
130 — 131

01
The restored Starco Center (right) continues to
overlook the sea as the planned, high-density
Hotel District is still undeveloped.
132 — 133

01
Harmonious alignment of restored and new develop-
ments on Omar Daouk Street.
134 — 135

01
Parallel to Riad El Solh Street, Bank Street shows
the back facades of the restored financial institutions,
overlooking the Roman Baths and the cascading
gardens below the Grand Serail on Capuchin
Church Street.
136 — 137

01
Landscaping is a key part of the Beirut Central Dis-
trict Master Plan, destined to contribute significantly
to creating a quality environment in the Lebanese
capital. A garden above the Weygand Street under-
ground parking lot now boasts a large water fountain
and a variety of greenery, including vines, olive trees,
and palm trees.
2000 Completed and Ongoing Developments

With archeological documentation and

evaluation in full swing, and following
extensive findings related to the Cardo
Maximus, a large site between several
places of worship is dedicated to be land-
scaped as the Hadiqat As-Samah (Gar-
den of Forgiveness), conceived as part
of the generative framework for the city
center’s comprehensive redevelopment.

00
140 — 141

00
With the completion of marine and most civic works
including a breakwater, a two-line defense structure,
and quays, Beirut Marina is able to berth boats
(though not at full capacity).
142 — 143

00
The second phase of land treatment begins, involving
the excavation, sorting, processing, and treatment of
five million cubic meters of construction debris and
domestic solid waste.
1999 Completed and Ongoing Developments

The city center is pulsing with life.

Landmark buildings are being restored
and cafes and restaurants are multiply-
ing, giving the people of Beirut and the
country as a whole a new destination
filled with landscaped, pedestrian-
friendly spaces.

99
146 — 147

99
Construction of the large underground parking facili-
ties of Beirut Souks continues while the art deco fa-
cades on Fakhry Bey Street (right) are fully restored.
148 — 149

99
In the blocks forming the immediate eastern edge of
Martyrs’ Square, the plan envisions a continuous
colonnade facing the square. Its objective is to create
a strong urban statement as a 21st-century expres-
sion of the 1920s Maarad Street colonnade.
150 — 151

99
The construction of Bank Audi’s headquarters and
branch offices nears completion. The project includes
three contemporary buildings connected by a top-lit
planted atrium together with a restored historic
building adjoined by a public garden court.
152 — 153

99
An increasing number of streets are lined with trees,
fitted with planters, or reorganized to accommodate
wide medians covered in trees, shrubs, and colorful
annual plantings.
1998 Completed and Ongoing Developments

All infrastructure works in the Traditional

City Center are complete including the
expansion of the Ring Road and the
creation of primary east–west and
north–south avenues, which organize
accessibility and conserve air and view
corridors.

98
156 — 157

98
Construction of the sea defense structure makes
headway. Man-made concrete blocks,“accropodes,”
are gradually cast on-site and placed among rocks
along the western breakwater to form the breakwa-
ter. A prefabrication yard is built on-site for the pro-
duction of the caissons, which will form the second
defense line.
158 — 159

98
The underground parking structure is under con-
struction and the design of Beirut Souks is underway,
planned to follow the ancient, pre-Roman street grid
and integrate archeological features and open land-
scaped gathering spaces.
160 — 161

98
At the beginning of the Serail Corridor, Bank Audi’s
new headquarters and branch offices are under con-
struction.
162 — 163

98
In the most innovative restoration concepts, such as
the BankMed building on Foch Street, the facade of
heritage buildings is preserved while the interior is
totally revamped to accommodate underground car
parks and flexible office space.
1997 Completed and Ongoing Developments

Restoration is being carried out based

on clear urban design and technical
guidelines, preserving facades and
adapting interiors to the needs of
contemporary life and business.
Meanwhile, following a fast-track
approach, the first major new develop-
ment nears completion.

97
166 — 167

97
While waste extraction and its subsequent bio-com-
posting progress, land reclamation continues with
backfilling into the sea on the northeast side of the
landfill.
168 — 169

97
Ongoing works on the expansion of the Ring Road
and addition of tunnels to ensure its opening to traf-
fic by the end of the year.
170 — 171

97
While infrastructure works accelerate on the Ring
Road, a fast-track approach is adopted to the con-
struction of the UN House building (center left) in
the Ghalghoul sector.
172 — 173

97
Excavations uncover a city wall and moat and a
Phoenico-Persian quarter, to be incorporated into the
design of the Beirut Souks, with the aim to highlight
the archeology and create a multisensory experience
that is educational and interactive.
174 — 175

97
Excavations around Martyrs’ Square reveal Hellenistic
and Roman remains. The latter are found within the
preserved foundation arches of the Ottoman Petit
Serail. Along with the Canaanite Tell and other find-
ings, they will be incorporated in the planned Beirut
City History Museum.
176 — 177

97
Infrastructure works on Weygand Street with the
preserved Amir Assaf Mosque in front of the Al
Omari Mosque (left) and Beirut Municipality (right).
1996 Completed and Ongoing Developments

Beirut city center becomes a large

archeological site, with excavations un-
covering major discoveries dating back
to several past civilizations. These exca-
vations are carried out following a UN-
ESCO protocol specifically devised for
the area in coordination with a number
of agencies and teams of experts from
several countries.

96
180 — 181

96
The Grand Serail, originally built in the mid 19th
century as an army barrack atop a hill during the
Ottoman period, is under restoration to become
the seat of the Council of Ministers.
182 — 183

96
Construction of the tunnel linking the Fouad Chehab
Avenue Bridge to the Corniche Road near the
Phoenicia Hotel.
184 — 185

96
One of the most important road works in the city
center is the expansion of the Fouad Chehab Avenue
Bridge. The 3.6 km Ring Road, as it is called, connects
to the western end of Fakhreddine Street by tunnel
and links through a longer tunnel to the Corniche
Road near the Phoenicia Hotel.
186 — 187

96
At the western edge of the Conservation Area bor-
dering Wadi Abou Jamil, St Louis Capuchin Church
(center) stands across from the Ottoman structure
that houses the Council for Development and Re-
construction, both restored.
188 — 189

96
Excavation is complete for the major office develop-
ment near Riad El Solh Square. The complex, named
UN House, will house several regional and local UN
agencies, in particular the Economic and Social Com-
mission for Western Asia (ESCWA).
190 — 191

96
The buildings on Fakhry Bey Street are being restored
while the Beirut Souks project is under design
through five separate commissions to Lebanese and
international architects.
192 — 193

96
Priority is placed on the delivery of infrastructure in
the historic core and its surroundings, including util-
ity works comprised of water supply and stormwater
and sewage networks, here underway on Weygand
Street in front of the Beirut Municipality building.
1995 Completed and Ongoing Developments

Informed by natural boundaries and

landforms, street patterns, visual corri-
dors, past neighborhood structures, and
preserved fabrics, the city center is envi-
sioned as a cluster of sectors, each with
its own detailed master plan.

95
196 — 197

95
In terms of the road network, works undertaken on
behalf and on account of the State include rehabilita-
tion of existing and construction of new primary and
secondary roads as well as bridges and tunnels to al-
leviate congestion at the main entrances to the city
center. Above, work progresses on the underpass
linking the old Hotel District to its new extension.
198 — 199

95
Underground utility works prepare the way to the
widening of the George Haddad Street in Saifi, de-
limiting the city center to the east.
200 — 201

95
The state of devastation after the war in Wadi Abou
Jamil before its reconstruction and development.
202 — 203

95
Infrastructure works on the underpass and
interchange leading to Selim Salam Boulevard
and connecting Beirut city center to the airport.
204 — 205

95
For the Beirut Souks, an initial master plan is com-
missioned for the Tawila, Ayass, and Al Jamil Souks.
Meanwhile, excavation works begin for the related
underground parking structure.
206 — 207

95
Ongoing infrastructure works in the Conservation
Area on Foch Street and its surroundings.
1994 Completed and Ongoing Developments

Comprehensive urban planning stresses

the topography of Beirut city center and
ensures a connection between the project
and its surrounding areas, accommodat-
ing a broad, sustainable, flexible land-
use mix.

94
210 — 211

94
As an example of transforming disaster into opportu-
nity, the new Waterfront District is planned as an ex-
pansion of an original landfill enclosing the Normandy
dumpsite (left) that has environmentally scarred the
city center foreshore since the Lebanese war.
212 — 213

94
Following an international design competition with
357 entries from 42 countries, a detailed master plan
for the Beirut Souks develops, synthesizing the tradi-
tional features of the old areas with the requirements
of modern commercial activity.
214 — 215

94
As the war ended and clearing works begin, an
agreement is signed with the Beirut Municipality to
use 11,000 sq m in the Martyrs’ Square area for social
programs and cultural activities. In the meantime, the
area welcomes informal cafes.
216 — 217

94
Most retained heritage buildings such as the Amir
Assaf Mosque (left) and Beirut Municipality (right)
will be restored in accordance with the guidelines set
in cooperation with the concerned national authori-
ties. Buildings considered of heritage value must be
faithfully restored to match their original external
fabric. Other buildings are allowed a certain flexibil-
ity, although they are subject to the prevailing height
and massing control criteria applicable in the sector.
218 — 219

94
Saifi, with a large number of retained buildings, is
planned as a “special residential policy” district of
medium density, with a network of pedestrian links,
small squares, landscaped streets, and gardens to
recreate a traditional urban neighborhood.
220 — 221

94
Riad El Solh Square, named after the first Prime Min-
ister of independent Lebanon, here without the
statue, removed during the war years.
Beirut’s postwar urban recovery is to be
directed through concerted private sector
investment into a carefully constructed
institutional framework, regulated by
government decree. It is set to become
one of the largest inner-city and water-
front renewal projects in the world.

91
224 — 225

91
The Beirut Central District Master Plan stresses the
topography of the city center, as well as the surviving
and heritage buildings, townscape views, neighbor-
hood fabric, and the many layers of historical mem-
ory forming the city’s heritage. Furthermore, it
ensures an effective connection between the Tradi-
tional City Center, such as Port Street above, and the
Waterfront District (the reclaimed land) and between
the whole project and its surrounding areas.
226 — 227

91
The Beirut Central District Master Plan provides an
urban design framework for both the restoration of
old buildings and the construction of new ones. It
recognizes Beirut’s rich heritage and aims to preserve
the city’s historical buildings and townscape features.
Allenby Street (right) is one of the maintained view
and air corridors leading from the Traditional City
Center to the new Waterfront District.
228 — 229

91
The state of destruction of the Old Souks after the war.
230 — 231

91
Martyrs’ Square and its surroundings before being
opened to the Mediterranean Sea with the aim to
reactivate the city center and enhance its link to
the waterfront.
232 — 233

91
The site of the planned Hadiqat As Samah (Garden
of Forgiveness), between Martyrs’ Square (far right
behind the preserved Opera House) and Nejmeh
Square (left, outside picture frame).
The Souks that formed the traditional
Levantine marketplace in Beirut’s city
center, had each a distinctive identity
and were mostly named after the goods
they specialized in, an anchor retailer,
or known family-names in business.

prewar
236 — 237
238 — 239